"Yet risk management teams are still expected to work with processes and tools designed for a more leisurely age-manual reviews of hundred-page documents, hand-typed case narratives and memos, and compliance processes that chase regulations one change at a time. Generative AI (gen AI) offers a different path, changing how risk teams work. Instead of spending hours manually combing through documents, teams can receive clear, decision-ready summaries in minutes. While technology does not replace professional judgment, it accelerates the groundwork, allowing experts to concentrate on assessing exposures and taking action before risks escalate."
"Workflows Designed for YesterdayFinancial organizations run on data, but most of it is locked in documents and is not analysis-ready. Transaction histories, loan documents, suspicious activity report (SAR) narratives, policy manuals, and claims notes are scattered across formats and systems. Risk professionals across almost any workflow must process, repackage, and interpret these documents before they can make a decision."
"This creates three points of friction: * Cycle times are considerably extended as risk managers and investigators wait for summaries and reports. * Different experts across the workflow highlight different facts, leading to inconsistency in risk assessments and approvals. * Fraud indicators are hidden in a diverse set of documents and data, with no unified view of exposure."
Risk exposures are shifting rapidly: credit risk changes in days, fraud patterns evolve overnight, and new regulations arrive with little warning. Risk teams still use manual processes designed for a slower era—lengthy document reviews, hand-typed narratives, and sequential compliance updates—which slow decision-making. Generative AI can deliver clear, decision-ready summaries in minutes, accelerating groundwork while preserving professional judgment and allowing experts to focus on assessing exposures and taking action before risks escalate. Most data remains locked in documents across formats and systems, forcing professionals to process, repackage, and interpret information before decisions can occur. Consequences include extended cycle times, inconsistent assessments, hidden fraud indicators, slower growth, higher costs, missed risks, alert fatigue, and reduced win rates.
Read at Harvard Business Review
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