The Chartered Institute of Loan and Risk Management of Nigeria (CILRMN) has called for the usage of Artificial intelligence (AI) in fraud detection and economic development in the country.
President and Chairman of the Governing Council of the Institute, Dr. Harriet Akubuiro gave this charge in Abuja at the 2024 international conference of the institute with the theme ‘Artificial Intelligence: An Essential Factor in Risk Management Practice’.
She said that AI is revolutionalising risk management worldwide, with the technology improving accuracy and efficiency, enhances risk management practices, provides simulation capabilities, and reduce risks in credit decisions and modelling.
Akubuiro identified AI as one that everyone irrespective of their profession or life’s endeavor will want to quickly embrace, as it assists in analysing big data, enables financial disclosures, and consequent risk quantum.
She noted: “It (AI) is broad, current and its benefits are overwhelming. A summary of what we are looking at through this theme is how to optimise risk management using AI.
“It is very useful in fraud detection, improves accuracy and efficiency, enhances risk management practices, provides simulation capabilities, reduces risks in credit decisions and modelling, assists in analysing big data, enable financial disclosures and consequent risk quantum.
“AI incidents are quietly shaping the future of risk management count yourselves very lucky to have attended this conference.”
Presenting the keynote, Provost, College of Postgraduate Studies, Veritas University, Prof. Linus Osuagwu said risk management is an integral component of strategic management decisions in organisations.
He stressed that systematically identifying and addressing risks could safeguard their objectives and capitalise on potential opportunities, thereby ensuring sustainable growth in the ever-changing environments of operations.
Osuagwu said AI stands as a transformative force with regard to risk management, adding that, it offers tools that enhance accuracy, efficiency, and responsiveness.
He added: “The trend of Al in risk management points toward increased integration and sophistication. Emerging technologies such as explainable Al aim to enhance transparency and trust in the applications of Al systems in risk management.
“Additionally, the development of Al governance frameworks will be of importance in ensuring the ethical and responsible use of Al in risk management practices.
“Generally, Al can enhance risk management predictions by providing more accurate, timely, and comprehensive assessments.
“Its ability to process large data, learn from new data, and automate complex analyses makes it an invaluable tool in modern risk management practices.
“However, while Al offers some benefits in enhancing risk management decisions, it is imperative to recognise and address its challenges.”