Risk intelligence is a

concept Concepts are defined as abstract ideas. They are understood to be the fundamental building blocks of the concept behind principles, thoughts and beliefs. They play an important role in all aspects of cognition. As such, concepts are studied by s ...

that generally means "beyond risk management", though it has been used in different ways by different writers. The term is being used more frequently by business strategists when discussing integrative

business process A business process, business method or business function is a collection of related, structured activities or tasks by people or equipment in which a specific sequence produces a service or product (serves a particular business goal) for a parti ...

es related to governance, risk, and compliance.

Definitions

The first non-definitive usage of the phrase "risk intelligence" appears in the 1980s and aligns to the definition of ''intelligence'' as being information from an enemy (for example, regarding

credit risk A credit risk is risk of default on a debt that may arise from a borrower failing to make required payments. In the first resort, the risk is that of the lender and includes lost principal and interest, disruption to cash flows, and increased ...

.) The topic of balancing risk and innovation using information and the cognitive processes involved also appears at this time. Recent usage is more aligned to ''

intelligence Intelligence has been defined in many ways: the capacity for abstraction, logic, understanding, self-awareness, learning, emotional knowledge, reasoning, planning, creativity, critical thinking, and problem-solving. More generally, it can b ...

'' as understanding and problem solving. The US business writer David Apgar defines it as the capacity to learn about risk from experience. Deloitte Risk Advisory partner (since retired) Stephen Wagner, along with former Deloitte partner and current management consultant and risk advisor Rick Funston, defined risk intelligence as a dynamic approach to protect and create value amid uncertainty. It is an enterprise wide process integrating people, processes (systems), and tools to increase information available to decision makers for improved decision making. The UK philosopher and psychologist

Dylan Evans Dylan Evans (born August 18, 1966) is a British former academic and author who has written books on emotion and the placebo effect as well as the theories of Jacques Lacan. Life and career Early life and education Evans was born in Bristol on ...

defines it as "a special kind of intelligence for thinking about risk and uncertainty", at the core of which is the ability to estimate probabilities accurately. Evans includes a risk intelligence test (RQ) in his book and on his website (below) analogous to IQ or EQ. American financial executive, author, and Columbia University professor Leo Tilman defined risk intelligence as "The organizational ability to think holistically about risk and uncertainty, speak a common risk language, and effectively use forward-looking risk concepts and tools in making better decisions, alleviating threats, capitalizing on opportunities, and creating lasting value."Tilman, L.
Risk Intelligence: A Bedrock of Dynamism and Lasting Value Creation
Retrieved 2015-04-01 He has argued that risk intelligence is essential to survival, success, and relevance of companies and investors in the post-crisis world. In this latest book ''Agility: How to Navigate the Unknown and Seize Opportunity in a World of Disruption'' (2019, co-authored with General Charles H. Jacoby Jr.), Tilman describes risk intelligence as a cornerstone of organizational agility.

Comparison with business intelligence

As an emerging concept, risk intelligence shares characteristics with other topics such as

business intelligence Business intelligence (BI) comprises the strategies and technologies used by enterprises for the data analysis and management of business information. Common functions of business intelligence technologies include reporting, online analytical pr ...

and

competitive intelligence Competitive intelligence (CI) is the process and forward-looking practices used in producing knowledge about the competitive environment to improve organizational performance. It involves the systematic collection and analysis of information from ...

. As such, there are some in those camps who believe that risk intelligence is the set of processes for the transformation of risk data into meaningful and useful information for risk analysis, treatment and planning purposes.

References

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External links

Projection Point
- Online risk intelligence test Risk management in business Actuarial science Risk analysis Intelligence

Definitions

Comparison with business intelligence

See also

References

External links