Business intelligence in corporate risk management

The academic literature and industrial reports have called for organizations to manage their corporate risks; however, there is still a lack of studies on effective risk management that take advantage of information technology (IT). Conventional IT-based internal controls allow organizations to build shareholders' confidence by ensuring transparency in internal business processes, but their capacity to effectively manage comprehensive organizational risks is limited. In this study, we introduce risk intelligence as an effective risk management method. By applying key properties of business intelligence (BI), risk intelligence can prepare organizations for a variety of severely disruptive events (including external risks) and empower them to take risks as a means to value creation. We explore the application of BI to various aspects of corporate risk management. Our analysis shows that risk intelligence can provide greater benefits to organizations by managing internal and external risks, improving the shock resilience before an event takes place, and supporting senior management's decision making through integrated scenario planning.