Loan Institute Urges Operators: Embrace AI for Strategic Risk Management

InfoStride News reports that the Chartered Institute of Loan & Risk Management of Nigeria is urging its members to adopt Artificial Intelligence (AI) as a crucial tool for addressing uncertainties in organizational and individual pursuits of objectives. Dr. Harriet Akubuiro, the President and Chairman of the institute, emphasized the need for Nigerians to recognize risks in all their endeavors and stressed that effective risk management strategies are essential to counter poor implementation.

The institute’s annual conference, themed “Risk Management Compliance, Corporate Governance, and National Value Creation,” covered a wide range of risk management issues across public and private sectors. Akubuiro highlighted the evolving landscape of risk management, emphasizing the importance of leveraging AI in this field. She asserted that technology has become integral, and embracing it is crucial for the institute’s sustainability.

Akubuiro underscored various emerging risk management landscapes, including environmental, social, and governance risk management, reputational risk management, cyber threats, brain drain risk management, and global resilience. These, she noted, are crucial areas for study to ensure relevance in the rapidly changing world.

In his keynote address, Prof. Musediq Abdul, President of Canada Executive Management and Professional, emphasized that compliance in risk management contributes to economic stability, investor confidence, regulatory framework enhancement, and the promotion of innovation and entrepreneurship. He defined risk management as the process of identifying, evaluating, and prioritizing risks, followed by coordinated resource application to minimize, monitor, and control the probability or impact of unfortunate events.

Abdul highlighted the significance of risk management practices in financial institutions and industries, emphasizing their role in preventing financial crises and maintaining a stable economy. He noted that strong corporate governance, coupled with effective risk management, builds investor trust, attracting investments crucial for economic growth.

According to Abdul, risk professionals play a pivotal role in shaping regulations that support economic development while effectively managing risks. He argued that effective risk management fosters a business environment where calculated risks are encouraged, promoting innovation and overall business growth.

As the Chartered Institute of Loan & Risk Management of Nigeria continues to champion the integration of AI into risk management practices, it seeks to position its members at the forefront of the evolving landscape, ensuring that they remain adept at navigating the complexities of the modern business world. Compliance, corporate governance, and risk management are seen as interconnected elements crucial for the sustainable development of Nigeria’s economic landscape.