Indian Journal of Research and Development Systems in Technologization (IJRDST)

ISSN: 2584-2579 (Online)

RISK MANAGEMENT USING DATA SCIENCE APPROACHES

Author(s)

Sivakumar, R.D.

Assistant Professor, Department of Computer Science, Bell Institute, Sivakasi West.

Abstract

Risk management, being the pivotal function along various sectors, ranging from finance to healthcare, is going through profound changes with the idea generation phase of data science. The paper shows the juncture where risk management and data science meet, and the dramatic effect of data-driven solutions on decision-making and organizational adaptability are demonstrated. By utilization of approaches including predictive modeling, machine learning, and artificial intelligence, risk assessment, identification, and mitigation are more effective given the power of data volumes a business may have at its disposal. Data science presents a way of accomplishing an integrated and holistic investigation of risks through the integration of a diversity of data sources, like the structured and unstructured data, which leads to higher accuracy of risk assessment. Predictive analytics assist organizations in analyzing risks and their underlying drivers before they occur and coming up with preventative strategies. Real-time tracking not only improves risk management activities but also facilitates the quick detection of errors or deviations from standard trends given faster responses to emerging risks. Also NLP and sentiment analysis help companies to detect public opinion and preempt potential reputational threats, offering a proactive approach to reputation management. The possibilities brought by data science in risk management are remarkable and need to be dealt with despite the hurdling problems of data quality, privacy and model interpretability. It is crucial to use accurate and trusted input data for the risk assessment as well as addressing the problems related to visibility and responsibility in environment where decisions are made by algorithms. As technology in data science continues to improve, new opportunities arise for even greater effectiveness in risk management. Through the identification and mitigation of current problems as well as the recognition and adoption of new trends, companies have the opportunity to utilize data science in the face of the uncertainties of the world, aiding in the creation and prioritization of strategic decisions resulting in greater resilience and sustainability.  

Keywords : Risk management, Data science, Predictive modeling, Machine learning, Artificial intelligence, Risk assessment, Real-time monitoring, Proactive risk mitigation, Natural language processing and  Sentiment analysis

Volume : 1

Issue : 1

Pages : 34-43

Date of Publication : March 2024

DOI

Published By

IJRDST

Published In

Indian Journal of Research and Development Systems in Technologization (IJRDST)