Top Executives Discuss the Imperative Role of AI and Constant Vigilance in the Modern Risk Landscape
In today’s digital age, where connectivity and data are paramount, the importance of effective risk management cannot be overstated. As businesses grapple with the ever-evolving landscape of digital threats, a panel of industry experts convened to shed light on strategies for risk mitigation in the digital era.
Tejas Mehta, VP of Finance India at Mondelez International initiated the discussion by defining risk as “something that could go wrong.” He emphasised a dynamic approach to risk management, advising organisations never to remain stagnant in their perception of potential risks. In the face of a digital landscape filled with challenges, a constant risk management approach is vital.
Mehta also highlighted the significance of AI in monitoring security risks continually. In his view, AI plays a pivotal role in safeguarding organisations against a variety of digital threats. He stressed the importance of effectively communicating the consequences of not managing risks, underscoring the need to show what happens when risks are left unaddressed.
Kabir Ahmed Shakir, CFO of Tata Communications, began by highlighting the immense responsibility that comes with handling a significant portion of the world’s internet network. He stressed that as the world becomes more connected, the security parameters of organisations are continually expanding. In the era of 24/7 connectivity, businesses must prioritise keeping information safe.
Shakir emphasised the role of artificial intelligence (AI) in risk management, stating that those who understand and utilise AI will replace those who do not. He urged businesses to proactively embrace AI in risk management, given the overwhelming volume of quantitative and qualitative data. When asked about managing data breaches and risks, Shakir mentioned minimising risk through high computation and using AI at the forefront.
Milind Joshi, CFO and Strategy Officer of Maximus International, stressed the importance of documenting how businesses face and manage risks. He discussed the potential of AI in risk management, stating that AI can detect potential future risks based on past data. However, he cautioned that AI has limitations as it relies on historical information to predict the future. The ultimate decision-making responsibility, he noted, still lies with the CFO, or Chief Risk Officer.
Joshi’s approach to risk management involves documenting past risks and communicating those experiences to every employee. This training, he believes, is crucial to building a resilient risk management strategy.
The discussion brought the critical role of AI and constant vigilance in managing risks in the digital era to the forefront. As the digital landscape continues to evolve, businesses must adapt, learn from past experiences and leverage AI to navigate the complex world of risk management effectively.