The benefits of using big data for risk management are indeed very helpful. He can identify and evaluate various existing business risks.
The activity of using big data for risk management is a learning experience of the Faculty of Economics and Business Telkom University.
Its main purpose is to identify, evaluate, and control the risks of business activities.
Big data is a term used to describe the huge amount of data that is constantly accumulating. Data comes from a variety of sources, such as sensors, apps, and social media.
Examples of Using Big Data for Risk Management
Through the use of big data in risk management helps companies identify potential risks that were previously undetected.
Big data allows companies to analyze large volumes of data. In addition, it is able to make predictions based on patterns identified from such data.
Here are some business fields that are greatly helped by the existence of big data in risk control.
Insurance
One example of the use of big data in risk management is in the insurance industry. Insurance involves many risks, including health risks, accidents, and natural disasters.
Insurance companies can use big data to analyze historical data. The information includes health, claim history, driving behavior, and so on.
Data will help insurance companies estimate the likelihood of claims and determine more accurate rates.
Financial Company
Financial companies are greatly helped through the use of big data in risk management. They can use big data to analyze customer behavior patterns.
That way management can estimate the possibility that customers will experience financial difficulties or default on their debts.
Financial companies can also take the necessary precautions and reduce the risk of default.
Manufacturing
The use of big data for risk management can also be used in the manufacturing industry
In the manufacturing industry, big data helps analyze machine performance, diagnose problems, and predict machine failures.
Transportation
Big data helps companies forecast a lot of things. The picture is in the form of travel time, predicting accidents, and determining more efficient and safer routes.
One major challenge of using big data for risk management is protecting data privacy.
In addition, companies must also ensure that the data they use is accurate and reliable. So it still has to be based on the precautionary principle.
