VENTURE CAPITAL
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Financial institutions need to decide if they will continue with business as usual or instead fundamentally rethink their approach to risk management , it states .
“ Institutions should examine how they can employ digital technologies – such as robotics process automation , cognitive analytics , advanced analytics , and big data – to automate repetitive manual tasks , provide decision support , and improve the ability to proactively identify and manage risks ,” it notes .
McKinsey identified six trends shaping the risk function , in a paper entitled The future of bank risk management , two of which focused on humanmachine interactions . Highlighting the importance of refreshing the talent pool , it states : “ Data scientists with advanced mathematical and statistical knowledge are needed to collaborate across the bank in the conversion of data insights into business actions .”
It also advises building a strong risk-management culture where the detection , assessment and mitigation of risk must become part of the daily job of all bank employees and not only those in risk functions .
JANUARY 2021