Despite its potentials, few firms have adopted cognitive risk sensing
Many organizations report that cognitive risk sensing can lead to the early detection of emerging risks and potential threats. But few companies are actually using the technology, according to a recent study by professional services firm Deloitte.
The firm polled about 1,590 C-suite and other executives online during a webcast in October 2019, and found that 39 percent said the greatest benefit of using cognitive risk sensing is the early detection of emerging risks and potential threats.
However, just 5 percent of the respondents said their organizations use enterprise-wide cognitive risk sensing to manage such risks. In an era of hyperconnectivity, many organizations lack the cognitive technology or risk analytics they need to turn real-time data into meaningful, actionable information, the report said.
“Contending with emerging risks is a constant consideration for most risk management, legal, compliance and internal audit teams,” said James Cascone, Deloitte Risk & Financial Advisory partner and U.S. and global predictive risk intelligence leader.
“As cognitive technologies improve, analytics techniques evolve for detecting anomalies and recognizing patterns across broad data sets,” Cascone said. “However, organizations that are skeptical of predictive analytics or aren’t as far along in their maturity may not be able to effectively anticipate risks or proactively manage disruptions.”
Cognitive risk sensing employs human insights with advanced analytics and machine learning to aggregate, analyze, and synthesize available data to interpret signals—both threats and opportunities—more effectively.