What is Risk Cognition?™
The growth in data and digital business processes has culminated in the emergence of Risk Cognition™—a new approach that combines data-driven insights, human cognition, data analytics, and adaptive strategies to effectively understand risks in the context of an increasingly complex and dynamic environment.
A technical process of integrating and leveraging contextualised data based on models of discernment, to gain a holistic understanding of risk drivers and support program integrity.
As we continue to navigate the complexities of the digital age, the next step beyond traditional risk assessments and risk management involves embracing a more dynamic and proactive approach to managing risk exposure. This need has has been profoundly influenced by the exponential growth of data and the integration of digital business processes, spurring the necessity for more complex approaches to gaining understanding. We call this Risk Cognition.
Risk cognition represents a paradigm shift from traditional risk assessment and management methodologies to encompass a deeper understanding of risk exposure. We must have solutions that acknowledge the dynamic underlying drivers of risk that arise in digital and human processes. Here's how this evolution unfolds:
With the proliferation of data, organizations now have access to vast amounts of information that can be leveraged to gain insights by analyzing historical patterns, trends, and anomalies.
Digital business processes enable real-time monitoring of activities, allowing organizations to detect and respond to risks as they emerge. This proactive stance enhances agility and resilience in the face of evolving threats.
Advanced analytics techniques allow organizations to forecast potential risks based on historical data and trends to empower proactive risk mitigation strategies.
Integration of Cognitive Technologies:
A cognitive approach to technology is integrated into risk management processes to augment human decision-making capabilities.
Risk cognition adopts a holistic approach to risk management that considers the interconnectedness of risks across different domains and organizational functions. It recognizes that risks require a coordinated and integrated approach to mitigation.
Risk cognition acknowledges that effective risk management requires not only data-driven insights but also human judgment, intuition, and decision-making skills.