AI Dependency: The Operational Risk Leaders Are Underestimating Operational risk leaders in financial institutions are increasingly reliant on artificial intelligence (AI) to inform their decision making processes.
However, this growing dependence on AI driven tools and systems is creating a new set of operational risks that many leaders are underprepared to address.
Understanding the Operational Risk Landscape Operational risk management is a critical component of any financial institution's risk strategy, encompassing potential losses from equipment failure and supply chain disruptions to employee misconduct and regulatory non compliance.