Abuja: Dr Harriet Akubuiro, Chairman of the Governing Council of the Chartered Institute of Loan and Risk Management of Nigeria (CILRMN), has announced that Artificial Intelligence (AI) is transforming risk management practices. Speaking at the 14th Annual Risk Professionals International Conference held in Abuja on Saturday, Akubuiro highlighted the growing impact of AI on contemporary risk management strategies. The conference, themed ‘AI: An Essential Factor in Risk Management Practice’, focused on optimizing risk management through AI.
According to News Agency of Nigeria, Akubuiro stated, “AI is quietly shaping the future of risk management. A summary of what we are looking at through this theme is how to optimise risk management using AI.” She elaborated on AI’s role in revolutionizing risk management, stating that it is instrumental in fraud detection, improving accuracy and efficiency, enhancing risk management practices, and providing simulation capabilities. “It also reduces risks in credit decision
s and modelling, assists in analysing big data, and enables financial disclosure and consequent risk quantum,” she added. Akubuiro emphasized that the future of risk management is not only about mitigating threats but also about leveraging AI for opportunities.
Prof Linus Osuagwu, Provost of the College of Postgraduate Studies at Veritas University, Abuja, underscored AI’s significance in risk management. He described risk management as a systematic process involving the identification, assessment, mitigation, monitoring, and control of potential risks. “AI encompasses a portfolio of technologies, including machine learning (ML), natural language processing (NLP), and predictive analytics. In risk management, AI facilitates the analysis of large datasets, identification of complex patterns, and generation of predictive insights that enhance organisational decision-making processes,” Osuagwu explained. He noted that AI applications in risk management include credit risk assessment, fraud detection and prevent
ion, marketing risk analysis, operational risk management, cybersecurity threat detection, supply chain risk management, and environmental risk assessment.
Osuagwu highlighted the benefits of AI integration into risk management, which include enhanced accuracy, real-time monitoring, scalability, and cost efficiency. However, he acknowledged that AI adoption also presents challenges. “Some of these challenges include data quality and availability, model interpretability, regulatory compliance, ethical implications, integration with existing systems, dependence on technological infrastructure, cybersecurity risks, as well as cost and resource requirements,” he said.
Mrs Salamatu Ahmed, Executive Secretary of the Federal Government of Nigeria Housing Loan Board, emphasized the institute’s role in promoting professionalism in risk management. Represented by the Director of Administration, Mrs Monica Igwe, Ahmed described the institute as a non-profit and non-political independent body committed to advancing bes
t practices in risk management. She highlighted the mandate of the Housing Loan Board to manage a revolving fund for granting soft loans to federal public servants to own homes, addressing the nation’s housing deficit. “The institute is always ready to partner with dynamic risk management institutions to advance itself with best practices. The board will continue to partner with the institute in capacity building for its personnel to ensure effective and efficient management of the housing loan scheme for the benefit of all federal public servants,” she added.