Innovation of Risk Management

Specifically, the working party will research the extent to which innovation of second line activity is possible over a 5, 10 and 20 year horizon.  Further, it will consider as part of its scope:

• The extent to which increased innovation provides greater opportunities for the CRO’s role to change, for example with a greater emphasis on helping the business identify opportunities to increase the upside
• How innovation in the second line may change the role of actuaries and opportunities for the actuarial profession
• The likely efficiency gains and business benefits, for both the first and second lines of defence, of greater innovation
• The possible automation of various second line processes including, for example;
  • increased deployment of Governance, Risk and Compliance systems
  • greater use of artificial intelligence to identify, measure, monitor, manage and report risks
  • linkages between the two systems (e.g. machine learning within GRC systems)
• How any of these changes might challenge the prevalence of the traditional three lines of defence model for risk management

The working party intends phasing its delivery approach to focus on specific elements of its stated scope in each phase.