The use of AI is projected to grow exponentially in the near future. James Bone discusses what this means for internal audit and outlines the key elements of an AI audit framework. Artificial intelligence has become a national strategic imperative for countries as diverse as China, Russia, the U.K., France, Canada and 13 other nations.,,, In February 2019, President Trump signed an...

The five pillars of the cognitive risk framework (CRF) are designed to provide a 3D view of enterprise risks. James Bone details here additional levers of risk governance in the final three pillars of the CRF. In earlier installments, James discussed the first pillar of the Cognitive Risk Framework (CRF), cognitive governance; the five principles undergirding cognitive governance; and the second pillar,...

Cognitive governance is the first of five pillars making up the cognitive risk framework; the second is intentional control design. James Bone discusses chief considerations around intentional design. The five pillars of a cognitive risk framework are designed to provide a three-dimensional view of enterprise risks. In the last installment, cognitive governance (CogGov) was introduced as the first pillar. Its five disciplines...

James Bone explores cognitive governance, the first pillar of the cognitive risk framework, and the five principles that drive the framework to simplify risk governance, add new rigor to risk assessment and empower every level of the organization with situational awareness to manage risk with the right tools. The three lines of defense (3LoD), or more specifically, risk governance is being rethought...

Cognitive governance is a radical departure from traditional risk management. James Bone explains the benefits and how the former complements the latter. After the 2008 reckoning of the Great Recession and a 60 percent decline in market value, I became redundant and soon began to question the failings of risk management as a discipline and my own skills as a risk professional....

As we move into the 4th Industrial Revolution (4IR), risk management is poised to undergo a significant shift. James Bone asks whether traditional risk management is keeping pace. (Hint: it’s not.) What’s really needed is a new approach to thinking about risks. Framing the problem Organizations, generally speaking, have one foot firmly planted in the 19th century and the other foot racing...

The audit profession is facing unprecedented demands, but there are a host of tools available to help. James Bone outlines the benefits to automating audit tasks.

The Danger – and Simplicity – of Cognitive Attacks The allegations of Russian influence on the 2016 election have been in the news for months. President Trump has claimed that Russian meddling was a hoax, but according to the Mueller investigation, that’s been proven false. While the Russians didn’t hack into polling systems, they did employ a different kind of attack: a...

The Driver Behind Enterprise Situational Awareness Intelligent automation is an emerging solution to enable intelligent decision-making at the strategic level, but it doesn’t necessarily have to be complex or require cumbersome new infrastructure. In fact, since overly complicated approaches to intelligent automation tend to result in project failure, simplicity may be the order of the day. “Intelligent Automation” is such a new...

Creating Situational Awareness Several prominent Wall Street firms are transitioning to a cognitive risk management environment. The changes they’ve made are significant, but there’s still work to be done. James Bone asserts that a more comprehensive approach is needed: one that includes intentional control design and machine learning – technology to help humans become more productive. In my previous articles, I introduced...

Musings of a Cognitive Risk Manager To drive change, you need buy-in, and to achieve buy-in, your people need to know the “why” behind the change. This is the premise behind cognitive risk governance, the “designer” of human-centered risk management. James Bone, author of Cognitive Hack: The New Battleground in Cybersecurity…the Human Mind, further explains the cogrisk framework. In my last article,...

Risk management has undergone a sea change over the past few decades, yet risk management practices have evolved very little. scarcely evolved to keep pace. Though organizations enjoy robust technological capabilities, they grow more fragile and vulnerable to massive systemic risks all the time. A risk program centered on human behavior and decision-making.