With every opportunity digital technology has provided to banks, customers and counterparties, it has also altered existing risks and often introduced new ones. While digital transformation is creating major opportunities, understanding and navigating through those risk areas is critical.
As technology continues to usher in a new era and drive transformative changes in every industry, corporates and financial institutions are altering their business models and redefining their operations underlined by automation, robotics and AI. While digital transformation is capturing new possibilities to head off the threat of disruption, it’s creating new risks that haven’t been encountered before.
Putting it simply, Ideagen head of ARC product Gordon McKeown said, “With [digital] opportunities come threats such ascybersecurity, data leakage, system failures, privacy and unethical automated decision making – and that is just the tip of the iceberg. As financial organisations become exposed to a broader range of risks in a digital environment, embedding a robustdigital risk management strategy will be crucial to success.”