The Business Case for a future-proof AI solution.
Published 26 April 2023 · AI, Predictive Analytics
AI Platforms
The considerations for a Business Case to implement a future proof AI driven GRC solution.
All your solutions are in one place, you can see your overall customer profile and risk score in a single view and action alerts and investigations are all accessed in the same interface.
Replacing point solutions with a single platform based product is challenging and should happen gradually, with solutions moved over one by one. The cost of and demand on resources involved can be seen as prohibitive. The length of such projects over time demands that the chosen platform has the DNA to remain technologically advanced to capitalise on future innovation and doesn’t age over time.
The business case for implementing a future proof AI driven GRC solution can be evaluated over a 3 year period, with the aim to have 2-3 solutions transitioned.
Costs
The net new costs should be assessed when implementing any new solution. Including taking account of the fact that infrastructure and software fees of the old and new system will overlap while the new solution is being built and the old systems is decommissioned. After a successful transition, the difference between old and new infrastructure and software costs would be considered, taking into account the following:
Infrastructure (on-premise or cloud-based)
Software Licensing
Change Management costs including training.
Solution Implementation costs.
Ongoing maintenance costs
Consolidating multiple systems into a single platform typically reduces licensing cost, infrastructure and maintenance cost after implementation.
Benefits
There are many benefits of a single AI driven solution that should form part of a business case, including :
Reduction in false positive alerts
Avoidance of fines
Reduction of fraud losses
Increased Customer Retention and Sales
Reduction of High Risk Customers
Reducing credit risk
Reduced supplier/vendor management cost
Comprehensive 360° view of customers and their opportunities and risks
The cost of NOT implementing a single AI driven solution is far greater than keeping, updating and maintaining point solutions to keep up innovation and stay compliant with an increasing demands from regulation and protecting the organisation against financial crime methods.
Where to look next
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- Adverse Media Search is a process that involves searching publicly available sources of information to identify negative or adverse news about individuals or companies. This type of search is commonly used by financial services organisations, such as banks and insurance companies, as part of their risk management and compliance programmes.
- Finding the balance between reducing false positives and increasing true positives
- The most important feature of a predictive analytics platform is the generation of high-quality prediction models that have the best ratios of true and false positives. No model is perfect, but many organisations compromise by implementing models that lean towards over-detecting..
- All insights
- Every article published on screening, monitoring, due diligence, sanctions and financial crime, newest first.
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This is published writing, not a product claim. If the problem it describes is live for your team, the shorter route is a conversation about your own data.