In the ever-evolving landscape of third-party risk management (TPRM), organisations require tools that not only meet their needs but also enhance the efficiency and accuracy of risk assessment processes.

As outsourcing to third parties expands, so too does the responsibility of businesses to manage the associated risks effectively. Despite relying on external suppliers, organisations remain accountable for ensuring compliance with their own business values and regulatory standards.

Historically, risk management has been a time-consuming, manual process reliant on the expertise of risk professionals. Key tasks—such as identifying risks, assessing their impact, devising response strategies, and continuous monitoring—are critical but labour-intensive.

GenAI within Risk Management

To streamline these processes, companies are increasingly adopting digital tools and Generative AI (GenAI) to automate manual tasks and optimise resources. GenAI represents a major advancement in risk management, providing automation that maintains high levels of accuracy and reliability.

TPRM Platform

Brooklyn Solutions’ platform transforms third-party risk management (TPRM) through the integration of Generative AI (GenAI), ushering in a new era of automation and precision. Traditionally reliant on manual processes, TPRM has been time-consuming and resource-heavy, but Brooklyn’s platform modernises this by automating key tasks like risk identification, evaluation, and mitigation. This automation creates a more dynamic, scalable, and efficient risk management process, allowing organisations to address risk faster and with greater accuracy.

The platform’s comprehensive Third-Party Risk Module provides enhanced visibility and control over third-party relationships. Its intuitive dashboard offers real-time insights into risk profiles, active risks, and risk ratings, giving users a clear snapshot of their risk landscape at any given moment. Fully automated risk assessments go beyond traditional methods, triggering tailored workflows, controls, and mitigation actions based on ongoing assessments. The dynamic Risk Register ensures that no risks are missed by logging actions and prompting risk owners to take the necessary steps in real time.

By incorporating GenAI, Brooklyn Solutions has redefined the risk management process, enabling organisations to manage third-party risks with increased transparency, automation, and agility, all while ensuring regulatory compliance and robust oversight.

Streamlined Risk Management Process using GenAI

The platform uses automation to create risks based on triggered actions, survey responses and more.

Once a risk is logged, the platform guides users through the best practices of risk management:

1. Risk Identification: The GenAI uses the risk title to generate a comprehensive description, automatically populating the relevant fields. This eliminates the need for manual data entry, saving significant time and reducing the potential for human error.

2. Evaluation and Ranking: The AI supports users in evaluating and ranking the risk. For example, if the risk pertains to financial or compliance issues, the AI helps draft the initial symptoms. These drafts are designed to be 85 to 90% accurate, allowing risk professionals to make final adjustments.

3. Impact Assessment: The AI extends its capabilities to drafting impact statements, further streamlining the process. This automation enables risk professionals to cover more risks in less time, increasing their overall effectiveness.

4. Response and Treatment: The platform can simultaneously generate response strategies for identified risks. This parallel processing ensures that response plans are developed quickly, allowing for timely intervention and mitigation.

Advanced Controls and Metrics

One of the powerful AI features is the platform’s ability to advise on controls. Once a risk is fully populated, the AI suggests appropriate controls that can be applied to the specific risk or across other similar risks.

This advisory capacity goes beyond suggestions; it provides actionable indicative metrics, along with recommended frequencies for reporting within the XLA module. For example, for a triggered risk regarding tax compliance, the GenAI Assitant ‘Ask Brooklyn’ will suggest a metric to monitor the number of identified tax compliance gaps, to ensure these gaps are addressed. The metric is aligned with best practices from established frameworks, such as those provided by the OECD, and includes recommendations for the frequency of audits.

Metric Definition and Customisation

The platform allows users to take the GenAI-generated metric information and set up the necessary metrics within our xLA Studio. Users can define metric types, adjust parameters, and ensure that the metrics align with their specific organisational needs. This feature gives users complete control over their risk management practices while benefiting from the AI’s advanced capabilities.

Conclusion

The integration of GenAI within the Brooklyn Platform represents a significant advancement in risk management. The platform empowers organisations to manage risks more effectively and efficiently than ever by automating key processes and providing intelligent, actionable insights.

As the landscape of risk management continues to evolve, tools like the Brooklyn Solutions Platform will play a critical role in helping organisations navigate complex challenges and safeguard their operations against emerging threats.

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