Loan, Risk Managers Call for Artificial Intelligence in Fraud Detection – News – The Guardian Nigeria News – Nigeria and World News

The Chartered Institute of Loan and Risk Management of Nigeria (CILRMN) has stressed the need for members of the association to use artificial intelligence (AI) to detect fraud.

The President and Chairperson of the Institute’s Governing Council, Dr. Harriet Nkechi Akubuiro, made this allegation on Saturday in Abuja during the Institute’s 2024 International Conference on the theme “Artificial Intelligence: A Vital Factor in Risk Management Practice.”

Stressing that artificial intelligence is revolutionizing risk management globally, Akubuiro maintained that the technology improves accuracy and efficiency, improves risk management practices, provides simulation capabilities, and reduces risk in lending decisions and modeling.

She described artificial intelligence as one that everyone, regardless of profession and lifestyle, will want to use quickly, adding that it helps in analyzing large data sets, enables the disclosure of financial information and, consequently, quantification of risk.

“It is broad, it is timely, and its benefits are overwhelming. To summarize what we are looking at in this topic is optimizing risk management using artificial intelligence.

“It is very useful in fraud detection, improves accuracy and efficiency, improves risk management practices, provides simulation capabilities, reduces risk in lending decisions and modeling, helps in big data analysis, enables financial disclosures and therefore risk quantification.

“Artificial intelligence incidents are quietly shaping the future of risk management. You may be the lucky ones who attended this conference.”

In his keynote speech, Provost, College of Postgraduate Studies, Veritas University, prof. Linus Osuagwu, who identified risk management as an integral element of strategic management decisions in organizations, explained that by systematically identifying and addressing risks, they can secure their objectives and capitalize on potential opportunities, thereby ensuring sustainability in an ever-changing operating environment .

According to Osuagwu, artificial intelligence is a transformative force in risk management, adding that it offers tools to increase accuracy, efficiency and responsiveness.

“Al’s trend in risk management indicates increased integration and sophistication. Emerging technologies such as explainable Al aim to increase transparency and confidence in the applications of Al systems in risk management.

“Additionally, the development of an Al governance framework will be important to ensure the ethical and responsible use of Al in risk management practices.

“Overall, Al can improve risk management predictions by providing more accurate, timely and comprehensive assessments. Its ability to process large data, learn from new data and automate complex analyzes makes it an invaluable tool in modern risk management practices.

“However, while Al offers some benefits in improving risk management decisions, it is necessary to recognize and address its challenges.

“In this spirit, organizations linked to risk management decisions should take a balanced approach and integrate AL with human governance, as well as ensuring data quality, adherence to ethical standards and maintaining compliance with regulatory requirements, among other relevant strategic considerations.

“This allows organizations burdened with risk management decisions to leverage the benefits of aluminum while mitigating its challenges.”