Author: N/A
Publisher: Institute of Chartered Accountants in England and Wales
Publication Year: N/A
Summary: The following article talks about how the boards need to lead their businesses on the “right thing to do,” both in terms of the law, their regulatory responsibilities (i.e., treating customers fairly outcomes) and ethics. When shifting towards greater use of technology, banks, insurers, and investment managers need to be pragmatic about the value of experience and emotion in decision making (the value of the local bank manager or your financial planner) compared to data and algorithms. Boards need to ensure businesses have the resources needed to be diverse and inclusive, in order to support effective decision making and risk management. A clear data architecture and a comprehensive inventory of where algorithms are being used is vital for boards and management to understand what data they have collected or acquired, how it is being used, and how the outcomes from use are traceable. Management need to be able to step back and consider if data and algorithm use is taking the business in the right direction strategically and is congruent with its social purpose.