The regulatory environment is complicated by a surfeit of policies and regulations. (Credit: Kasitthanin/AdobeStock)
In today's technology-driven business world, Chief Risk Officers (CROs) have assumed a more strategic organizational role. Gone are the days when risk management oscillated between compliance and financial risk mitigation. In the age of artificial intelligence, cyber threats, regulatory complexities, and trade war uncertainties, CROs need to strike a balance between changing regulations, data privacy, and security risks, navigating a web of issues that directly bear on business resilience and success.
|1. AI-driven risks and ethical governance
Cybercriminals are automating attacks using AI, which are difficult to uproot and can coerce human behavior via sophisticated social engineering strategies. And whether companies use AI for cyber defense purposes or to facilitate systems and production, the ethical implications of using AI, including algorithmic bias, data privacy, and regulatory matters, add to CRO’s workloads.
To counter AI risks, CROs must engage with stakeholders to create ethical AI governance frameworks that ensure AI's safe application and accountability. They should implement procedures for continuous AI monitoring, track model integrity, and detect emerging risks in real time.
|2. Navigating regulatory compliance and emerging AI laws
The regulatory environment is complicated by a surfeit of policies and regulations. It is changing fast with new AI governance acts, cybersecurity rules, and data privacy regulations surfacing internationally. CROs must navigate duplicative and intricate compliance obligations, making their businesses compliant with legislative mandates without incurring hefty penalties or slowing productivity.
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