Risk Managers

Entrepreneurs have always taken steps to prevent losses or damage to their businesses. During the Industrial Revolution, business owners recognized that as production levels increased, risks increased at the same rate. The risks were often managed at the expense of worker health and safety.

Only since the mid-1950s, however, has risk management developed into a specialized field. With the rapid growth of technology came greater and more varied risks. Risk management changed from simply buying insurance against risks to planning a wide variety of programs to prevent, minimize, and finance losses. Today's risk managers analyze data through various advanced artificial intelligence (AI)–powered software and Internet programs, and help individuals, companies, and government agencies reduce the risk of loss due to accidents, incidents, and catastrophes. "Artificial intelligence and machine learning tools, with their advanced prediction techniques and capabilities to utilize large volumes of data, are increasingly being used in risk management for quicker and more efficient credit-, investment-, and business-related decision making," according to "Artificial Intelligence in Risk Management," an article on the Web site of KPMG (a professional services firm). They are also being used in areas such as cybersecurity and operational risk.