Artificial Intelligence (AI) technologies are increasingly being used outside the customer experience focused areas of enterprises. Jun Wang, a Management Consultant at Capgemini, describes one such deployment, where AI technology was employed to rationalize and standardize a financial institution’s risk and process library.
Historically, every region of the financial institution had their version of risk and process taxonomies. This was due to the lack of centralized governance. Hence, the overall operational risk library contained a redundancy of specific risks and processes created at the local level. Therefore, in one of the work streams, it was decided to use AI technology—natural language processing (NLP)—to build new taxonomies. The goal was to rationalize and standardize the risk and process library so that every region would utilize and apply the same risk and process libraries in the future.
There were a total of 5,000+ risk taxonomies and 6,000+ process taxonomies across the different geographies. In addition, not all the taxonomies were documented in English. The NLP technology first translated the taxonomies from 13 different languages into English. The system then cleaned up the taxonomies database by identifying similarities among taxonomies. Based on the level of similarity, the NLP solution created different categories. As a result, the list was narrowed from 5,000+ risk and 6,000+ process taxonomies to 250 risk and 190 process taxonomies.
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