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Harnessing AI for Risk Assessment and Mitigation in Enterprise Risk Management

Harnessing AI for Risk Assessment and Mitigation in Enterprise Risk Management
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Author(s): Usharani Bhimavarapu (Department of Computer Science and Engineering, Koneru Lakshmaiah Education Foundation, Vijayawada, India)
Copyright: 2026
Pages: 22
Source title: Risk Management and Corporate Governance in Unpredictable Business Environments
Source Author(s)/Editor(s): Iylia Dayana Mohamed Izwan (Management and Science University, Malaysia), Azman Norhidayah (Management and Science University, Malaysia), Nor Balkish Zakaria (University Teknologi Mara, Malaysia)and Kazi Sohag (Ural Federal University, Russia)
DOI: 10.4018/979-8-3373-0613-1.ch002

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Abstract

Enterprise Risk Management (ERM) is an organized process that is used for identifying, assessing, and averting risks, which have impacts on the performance and goals of an organization. As business dynamics have become riskier and increasingly complex in our time, the right risk management has become inevitable for organizations aspiring to be viable and sustainable. This essay depicts techniques in ERM, with a central focus on structured risk identification through data analysis, quantitative model-based risk analysis, and crafting specific mitigation plans. It highlights utilizing sophisticated techniques such as machine learning, i.e., Bi-Stacked Gated Recurrent Units (Bi-Stacked GRU), to enhance more precise forecasting of risks and make dynamic decisions. The incorporation of such technologies in ERM models assists organizations to predict and handle risks, minimize vulnerabilities, and enhance performance.

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