Future Risk Management Trends 2024-2025

🔍 Risk management is divided into two separate things: "risk management one" and "decision making", highlighting the critical importance of decision making in the process.
💰 Understanding the difference between expected and unexpected losses is crucial for budgeting and insurance purchasing, as it can lead to significant cost savings.
🔍 Instead of treating fraud risk as a separate thing, it should be explicitly addressed in decisions related to payments, vendors, procurement, and investment projects.
🌊 Deep diving into specific risks can reveal unexpected and significant impacts, like the $1 billion water pollution risk.
📊 The use of advanced technology can instantly recalculate thousands of scenarios, revolutionizing risk management processes.
📉 You can reduce the cost of insurance, operational losses, maintenance budget, and write offs from bad deals in Sales and Credit Management, all of which are real hard cash savings.
🤖 AI can be used to simplify risk management and make it quicker, allowing for a more efficient use of time and resources.
🤖 The potential of AI chatbots trained on specific knowledge domains to provide more accurate and relevant answers than general AI models like GPT.

Effective risk management and decision making can lead to significant cost savings and improved efficiency in various areas of business operations.

00:00 🔮 Strategic risk management involves both enterprise-wide and critical external user perspectives, with in-depth analysis sacrificing quality and necessitating a change in organizational operations.
11:22 🔮 Different decisions require flexible risk management approaches, integrating risk analysis into projects, understanding math for cost savings, and addressing fraud risk, with a focus on stakeholder buy-in and supporting victims of conflicts.
18:59 🔮 Incorporating risk management into decision-making and planning is crucial for a realistic representation of risks, and organizations should find a risk generator to run monteo simulations and implement risk management techniques.
23:40 🔮 Shift from manual calculations to integrating risk calculators into decision-making, understanding risk tolerance, aligning risk models with appetite, and using interactive risk engines for scenario simulation.
30:58 🔮 Understanding the relationship between risk generator and user is crucial for future risk management, with a focus on compliance, qualitative to quantitative conversion, and the balance between risk management one and two.
38:58 🔮 Risk management is crucial for companies to demonstrate cash savings, comply with regulations, and optimize actions, but regulators are behind and it's best to just comply and not think too much about it.
46:47 🔮 Risk management trends focus on reducing insurance costs while maintaining quality, with tools for assessing environmental and contingency risks, and the importance of integrating ESG risks for effective management.
53:31 🔮 Future trend in risk management focuses on simplifying and speeding up using AI, with a focus on quantitative models, interactive risk adjustment, and cost-saving measures.