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AI Agents: Strengthening Vendor Risk Management in India
With the increasing reliance on third-party vendors, Indian organisations face growing risks like data breaches and operational disruptions. Recent incidents like the Wipro attack and the Mobikwik data leak highlight the importance of robust vendor risk management in the Indian context/
Traditional approaches struggle to keep pace, but AI offers a transformative solution. AI can act as an agent, proactively identifying and mitigating risks in real-time . This includes:
- Automating risk assessments: AI analyses vendor data to identify potential risks efficiently and accurately.
- Enhancing risk prediction: AI algorithms predict potential risks before they materialise, enabling proactive mitigation.
- Improving compliance: AI helps organisations stay abreast of regulatory changes and monitor vendor compliance.
To effectively leverage AI for vendor risk management, consider these guidelines :
- Define clear risk criteria and AI goals: Establish specific risk criteria aligned with your organisation's objectives and compliance needs. Identify the goals of using AI, such as real-time monitoring or automation of risk assessments.
- Select appropriate AI tools and data sources: Choose AI-powered tools for data collection and risk analysis. Select reliable internal and external data sources, including financial data, regulatory records, and news sources, to ensure comprehensive risk assessments.
- Utilise AI-specific standards and frameworks: Leverage frameworks like NIST AI Risk Management Framework, the EU AI Act, and ISO 23053 to guide your AI risk assessment and ensure responsible AI practices.
While AI offers powerful capabilities, human expertise remains crucial . Collaboration and continuous monitoring are essential for successful AI implementation in vendor risk management.By embracing an AI-powered agentic approach and adhering to these guidelines, Indian organisations can proactively mitigate risks and safeguard their operations in today's interconnected world.
