Where AI Helps Power Operational Risk and Compliance Decisions
In an era where organizations are constantly seeking to enhance compliance processes, the integration of AI is becoming increasingly pivotal. This digital transformation is not merely a trend; it is a fundamental shift aimed at improving compliance outcomes while streamlining risk-related activities.
The Foundational Role of Data
The significance of data in these transformation journeys is paramount. As organizations transition towards utilizing AI within their risk and compliance workflows, the importance of timely and well-governed data cannot be overstated. According to a study by Moody’s, over half (53%) of risk and compliance professionals are currently using or piloting AI, indicating a clear move towards more data-driven and proactive approaches.
Embedding AI into Workflows
AI can effectively support risk management and compliance when integrated directly into workflows rather than relying on open-ended prompts. Moody’s Maxsight™ platform exemplifies this approach, unifying governed data, analytical models, and configurable workflows to aid operational risk and compliance decisions across organizations.
Instead of asking AI to perform individual tasks, users can describe the desired outcome, allowing the system to configure the necessary steps to progress the work. This shift from interaction to execution is fundamental to the next generation of system configuration.
Operational Examples
For instance, a compliance officer overseeing a new supplier can leverage the system to automate the assembly of screening rules, risk thresholds, and reporting schedules. By simply outlining their requirements, the system configures the workflow, assigns relevant AI agents, and establishes necessary governance controls with continuous human oversight.
How Maxsight™ Agents Function
For effective operation, Maxsight™ AI agents must function with complete context, incorporating domain knowledge, governed data sources, analytical tools, and historical decision-making. These elements, referred to as skills, enhance the agents’ capabilities, allowing them to learn and improve through governed interaction. As processes evolve, workflows and risk models are reconfigured, preserving a history trail.
Introducing the Due Diligence Agent
Last year, the introduction of the screening agent accelerated entity and individual screening processes like KYC and sanctions screening. The new due diligence agent further extends this capability, acting as a digital research analyst that streamlines traditionally fragmented and manual tasks. By structuring and accelerating these tasks, the due diligence agent significantly reduces the time required for coordination and repetitive analysis.
Developed with input from industry specialists, the agent’s workflow mimics human analyst processes, which are continually refined. Outputs are designed to reflect the judgments typically made by experienced analysts, ensuring quality and accuracy.
A Comprehensive View of Risk
Utilizing Moody’s extensive data resources and external sources, the due diligence agent synthesizes a comprehensive, entity-centric view of risk. This integrated view encompasses:
- Firmographics and company profiles
- Ownership and governance structures
- PEP exposure and state links
- Jurisdiction and industry risk
- Financial health
- Sustainability dimensions
- Cybersecurity posture
- Legal history
- Sanctions and compliance findings
- Regulatory concerns
- Adverse media
- Key third-party relationships
This comprehensive assessment supports various use cases, including onboarding, supplier due diligence, enhanced due diligence, third-party risk assessment, and ongoing monitoring.
The Future of AI in Risk Management
The prompt-to-process capability of Moody’s will continue to evolve, as agents learn from user interactions and reconfigure workflows and risk models accordingly. The focus will shift from automating individual tasks to orchestrating decision workflows based on governed data and real-world usage.
As Maxsight™ integrates entity data, due diligence, screening, monitoring, and reporting into unified, intelligence-driven risk workflows, its agent capabilities will further evolve to assist users in making nuanced, risk-based decisions while ensuring compliance and regulatory control.
In this dynamic landscape, risk-relevant data will transition from passive consumption to active utilization, allowing businesses to shape, test, and refine their decision-making processes. Teams will gain direct control to adjust thresholds, workflows, and decision logic dynamically while maintaining governance.
Get in Touch
To discover how Maxsight™ can enhance connected, data-driven decision workflows across your organization, reach out to our team for more information or to discuss next steps. We look forward to hearing from you.
