Increasingly complex risk policies
A client of KPMG Global, an international bank, was struggling with a seemingly simple question: how can we simplify large volumes of documentation on policies and procedures and automate our risk policy management processes? This bank faces a wide range of risks globally (credit, market, operational, compliance, and reputational) and must manage them all. This depends on the application of clear, up-to-date risk policy rules and procedures that guide the decision-making of the executives and professionals working there. The bank concluded that its risk policy had become too complex and difficult to access, resulting in inconsistent decision-making, which in turn introduced new risks. The internal central risk team decided to take action with the goal of digitizing the policy and making it more intuitive, so that employees can navigate the complex world of risks with confidence.
Using AI while keeping people involved
At KPMG, we started by mapping the bank’s global policy landscape across all activities. This gave us a comprehensive overview and a clear starting point to identify where simplifications and/or improvements could be made. We then began digitizing the policy by breaking down documents into their core components (such as article texts, associated business rules, and the data attributes needed to execute those rules) using AI. Artificial Intelligence accelerated the digitization process while leaving room for expert input. The use of AI also helped speed up the digitization itself thanks to the added flexibility for incorporating expert feedback and refining the output through a ‘human-in-the-loop’ feedback mechanism.
The result
The bank now has a smarter, faster way to manage risk policy. Professionals have access to up-to-date and concise information on how policies should be applied. Decisions are supported by a consistent application of risk frameworks, providing much-needed clarity. At the same time, regulatory changes and policy updates are implemented more quickly. Crucially, thanks to the simplified and digitized risk policy guidelines, the central risk team now has insight into how policy is applied across the entire bank.
