Will “SKYNET” take over the Audit Profession….? No, But it will change it forever……

By CA Anand Prakash Jangid

I was very fascinated by my recent interaction
with fellow risk professionals and Chief Audit Executives from around the world
to attend the IIA international Conference at Network.  The reason for my
fascination was the new interest in using Big data and Artificial intelligence
in Risk management & Audit functions. There were a lot of enthusiasm as
well as concerns of having the “old wine in new bottle”.

15.0pt;vertical-align:baseline’>Robots and world domination have long been the
reserve of Hollywood and what-if scenarios — right up there with the zombie
apocalypse and alien abduction. An intelligence system like Skynet, aka
the “Global Digital Defense Network” that features prominently in the
Terminator franchise, starts to feel like an increasingly real possibility.
15.0pt;vertical-align:baseline’>Moore’s Law famously estimates that
computing power approximately doubles every 18 months. By that measure, a
computer with the processing power of the human brain could be a reality as
early as 2025! Now let’s see if we can harness this for Risk and Audit
functions in our organizations
15.0pt;vertical-align:baseline’>I heard an interesting panel discussion where
CAE of a large insurance company mentioned that his team spends more than 50 %
of their project time in cleaning the Audit data. That’s a criminal waste of
the finite resources which the risk and audit team have. But that’s the new
reality as we move into a “DATA ECONOMY”. We are generating data (both
Structured and unstructured at a pace which is mind blowing.
15.0pt;vertical-align:baseline’>Now it’s on us Audit & Risk Professionals
to figure how we harness the power of Big Data and Artificial intelligence.
There are many use case which I discussed and also learned from my fellow
professionals. I am sure that the time has come to use the power of “Big Data
& Artificial intelligence” in the Risk & audit functions to ensure we
deliver effective and efficient services to our stakeholders.
15.0pt;vertical-align:baseline’> I think the time is right to change our
perspective on how we handle the Risk and Audit functions and disrupt the
status quo as there go a saying –
15.0pt;vertical-align:baseline’>“You can’t do today’s job
with yesterday’s tools and still be in business tomorrow”
15.0pt;vertical-align:baseline’>Also I would be sharing more of my interesting
insights with you all in future post including some real cool use-case of using
“Big data and AI”.  Let me know your
thoughts at Anand@quadrisk.com