Contextual Data Will Become Vital

I just came across Brenda Boultwood's article for GARP; "How People, Data and Conduct Will Shape Risk Management in 2015". In it she talks about context and the contextual data that concerns our ability to understand the implications of risk. This struck a cord with me because, I see Predictive Risk Analytics (PRA) for Complexity Management in a similar light. PRA for complexity management has an overarching mission. This is to provide a new type of business radar that is based on context. Here's what brenda has to say on context and risk assessment:

There is little doubt about Big Data's potential for the enterprise. The ability to collect, process and analyze data sets of all shapes and sizes is transforming the way that companies around the world develop products, service customers and compete. From our vantage point, it is also impacting the way that organizations develop, manage and evolve their GRC programs.

In 2015, context data in particular will become essential in order to conduct accurate risk assessments and execute successful risk management initiatives. Once considered a "nice to have," reference data (e.g., on related risks or audit findings; internal and external events associated with particular business processes; or key risk indicator threshold breaches) will be required to support risk assessment ratings, particularly as they occur in the first line of defense.

To process relevant context data effectively, companies will need to further invest in advanced systems and capable people who can establish meaningful relationships between the information and the related business areas in question.