How AI Transforms Risk Assessments Through the Systematic & Consistent Application of Risk Intelligence

Blog post CENTRL Marketing 2023-11-03

ODD Solutions

MOUNTAIN VIEW, CA - November 3, 2023

Artificial intelligence (AI) has emerged as the driving force behind innovative transformation across industries, but particularly in the meticulous realm of due diligence and risk management. We believe AI is transforming the landscape to deliver faster, more accurate risk assessments and free up analyst time to focus on higher value tasks requiring advanced knowledge and expertise.  

CENTRL has created a new blog series to explore how AI will transform management of third party risk and diligence. The best way to understand the scope of its impact is to disaggregate its role across each of the key steps in the risk assessment process.  

In this first installment, we’ll take a look at risk assessment processes and explore how the systematic and consistent application of generative AI can empower teams to be more comprehensive, accurate and transparent and do so at a scale and with speed previously impossible. We’ll also introduce you to CentrlGPT, CENTRL’s new generative AI module, designed specifically to facilitate intelligent, rapid, and consistent risk assessments.  


Three Traditional Challenges in Risk Evaluation

1. Time-Intensitivity

  Risk assessments can be a very time intensive process. Analysts must review massive amounts of data across dozens (if not hundreds) of questionnaires and documents at any given time. This can severely limit their ability to focus on insights and mitigation measures and reduce risk.

2. Inconsistent and Subjective

  Manual risk evaluation processes can be highly subjective and inconsistent. This variability leaves the door open for critical risk factors to go undetected.

3. Limited Audit Trails & Decision Justification

  Owing to the time requirements and subjective nature of current risk assessment processes, the evaluations lack explainability and a clear articulation of the rationale for the decisions. The lack of transparency jeopardizes the completeness of the risk evaluation and the decisions may not stand up to the scrutiny of audit oversight.


How can CentrlGPT help?

CENTRL, the leading third party risk and diligence platform launched CentrlGPT this year to leverage the power of LLMs and Generative AI to transform risk and diligence processes. Acting as a Risk Co-pilot, CentrlGPT completely solves for the current challenges outlined above and dramatically elevates the ability of risk professionals to mitigate risk. It does so by automating the review of large amounts of data - whether in questionnaire responses or documents - to provide accurate, highly explainable risk decisions in a matter of minutes as opposed to hours and days. CentrlGPT combines the processing power of large language models with domain-specific expertise, empowering evaluation teams to:

  • Automate Review Processes: CentrlGPT automates the review process by intelligently navigating through large volumes of attachments and provides detailed findings without manual intervention within minutes.

  • Enhance Accuracy of Risk Decisions: CentrlGPT flags risk decisions based on specific criteria thus eliminating subjectivity. It does so consistently across large volumes of data and provides more clear traceability than would be possible in any human process.

  • Gather Deep Insights and Configure Risk Alerts: CentrlGPT detects risk in minutes, ensuring high-risk items are promptly flagged for review so teams can execute timely interventions.

Watch our CentrlGPT video to learn more about CentrlGPT, its capabilities, and how it allows teams to do more than ever before.

Stay tuned for our next Blog about how AI and Large Language Models can replicate intelligent responses to variations of the questions, saving hundreds of hours for diligence teams.

Interested in learning more? Getting started with CentrlGPT is simple. Schedule a demo, or learn more about what AI can do for your teams.

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