How Business Can Monitor Emerging Risks in Real-Time Using AI
27 April 2020 - By Ian van der Vlugt, Director of Product
The pace at which COVID-19 has emerged as a public health crisis is matched only by the speed of its emergence as a business risk. This highlights how quickly any issue can become a material priority.
As companies react to the multifaceted impacts of the pandemic, ESG-centered questions are being probed by stakeholders from across the economy and society to ensure a sustainable transition through this crisis. How companies identify these questions, prioritize them, and answer them is central to their success. And in this constantly shifting risk landscape that connects a multitude of often competing stakeholder voices, only leading technology rises to meet this critical imperative.Now more than ever, comprehensive risk management practices necessitate a dynamically-enabled materiality process. Datamaran’s newest product feature, Monitoring, makes it easier than ever to monitor emerging issues in real-time.
What is Monitoring?
The Monitoring dashboard leverages the power of AI to reflect how different stakeholders are positioning the ESG issues relevant to business - and how their importance has changed over time - to facilitate a holistic view of emerging or retracting trends.This functionality integrates with the previously released Community Topics to enable a dynamic monitoring process that has its foundations in strategic materiality. This process allows companies to answer three fundamental questions:
- What is important now?
- How does what is important change over time?
- What is likely to emerge as material in the future?
In a single view, companies are now able to identify which issues are gaining or losing attention - and which stakeholders are driving those trends. Datamaran draws from a wide dataset to indicate which direction peers, regulators, policy-makers, and both social and traditional media are leaning, on any issue.
Coupled with Emerging Issues Analysis, the insights provided by Datamaran support robust issue governance relevant across business units. This analysis offers an additional analytical layer to a materiality assessment by comparing issue importance in leading and lagging stakeholder voices, like corporate reports and voluntary ESG initiatives.
The future is dynamic
Monitoring bolsters the materiality process by providing up-to-date information about the stakeholder views that affect corporate ESG issues. Where materiality was once a static project, it is now a dynamic process; dynamically-enabled materiality means a proactive approach, requiring relevant information to be made available quickly.Datamaran’s datasets are constantly updated - enabling powerful insights in nearly real-time. Now, conveniently integrate these insights with an established materiality analysis with the Monitoring dashboard.
Enhancing stakeholder engagement
Monitoring can improve stakeholder engagement, as well. By assessing stakeholder priorities on an ongoing basis, companies can target key risks for additional management and leapfrog reporting cycles.
Monitoring relies on already existing frameworks, data, and analyses to provide insights at the click of a button. It’s fast, simple, and insightful. When traditional methods of stakeholder engagement are disrupted, Monitoring still provides salient information on the issues important to key external stakeholders - and when disruption occurs, that’s when this information is most valuable.
This is just one of many updates that Datamaran is launching this year to enhance corporate risk monitoring processes. Please get in touch to share your feedback and learn more.
See how Datamaran can help you
Trusted by blue-chip companies, Datamaran is the market leader in external risk management and the only software in the world that supports a data-driven business process for monitoring external risks and opportunities. In house - at any time.
Datamaran enables a fully automated and digitized approach to monitoring emerging and ESG issues, tailored to your business and value chain. It offers real-time analytics on strategic, regulatory and reputational risks to strengthen decision-making - with the power of AI and Big Data.
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“Data-driven materiality helps us to take better strategic decisions.”
Antoni Ballabriga, Global Head of Responsible Business, BBVA