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March 2025 • Issue 25:03:01
Intelligent risk management –its

time has come

then can they create the analytics and intelligence neces-
sary to turn that data into a strategic asset.

In a rapidly digitizing world, intelligent risk management
signifies the transition from reactive to proactive approach-
es to managing risk. Leveraging technologies such as arti-
ficial intelligence for risk management not only refines the
accuracy of predictions, but also expedites the process, en-
suring timely interventions.
The payments component
In payments, intelligent risk management is necessary to
create a comprehensive plan that can identify, assess and
mitigate potential risks associated with the decision mak-
ing required for everything from boarding a merchant to
By Patti Murphy processing payments. In this context, risks can stem from
"Data is the currency of the future," said Ed Vincent, CEO at fraud, chargebacks, data breaches, operational failures and
SRA Watchtower, a SaaS provider that bills itself as a holistic more; risks can be reputational, regulatory (think PCI and
risk and business intelligence platform. "All institutions EMV), third-party and cybersecurity-related.
need to turn their data into a value-added asset."
And as technology evolves, so do the associated risks, for
Vincent understands this firsthand, as he works with com- example, new threats like synthetic identity fraud and
munity financial institutions and credit unions to integrate deepfake scams.
their siloed technologies and solutions in ways that enable
them to compete with large regional and national banks. Advanced technologies, notably AI and machine learning
tools, pave the way for advanced risk intelligence, SRA
"Our view is that small businesses are the lifeblood of this Watchtower explains on its website. The ability these tools
country, and that it is the local credit unions and banks that bring to swiftly respond to risk scenarios plays a crucial
bankroll these businesses," Vincent said. "So, in order for role in enhancing overall organizational resilience.
the heartbeat of this country to exist, there's a need to keep Leveraging advanced analytics, ML, and predictive model-
those community financial institutions happy, healthy,
safe, sound and risk informed."

Recently, SRA Watchtower acquired Lumio Insight, a cloud- Contributed articles inside by:
based data management and analytics provider—a move
Vincent said will enhance SRA Watchtower's ability to pro-
vide a holistic risk and intelligence platform to community Allen Kopelman .....................................................................................14
banks and credit unions so that they can make better risk Ken Musante .........................................................................................26
decisions.
Mark Dillon .............................................................................................28
Providing a holistic view of risk is no easy task; FIs have Zaki Farooq .............................................................................................30
always been run in and around siloes. To achieve an intel-
ligent approach to risk management, an FI needs to break Paul Clarke ..............................................................................................32
down those siloes and bring together information. Only

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