” Eagle Eye, the Artificial Intelligence tool that helps us make even better credit risk assessments. ”
Financial Risk Consultant.
Tim Waaijer is Financial Risk Consultant at Deloitte Risk Advisory. One of his current projects is Eagle Eye, an artificial intelligence technology designed to make credit risks assessments more accurate.
'At Risk Advisory we work in separate teams for legal, control, compliance and cyber. I'm part of Financial Risk Management myself. My team consists of specialists from a wide range of disciplines: from mathematicians and physicists to business economists and econometricians. Most of our clients are major banks and insurance companies whose data we examine and interpret.
Our job is to calculate their credit risk, the potential losses that would be incurred in the event of a financial crisis. You can put a number on that. As required by De Nederlandsche Bank and the European Central Bank, all banks and insurance companies have to set a particular amount of money aside just in case. So how do we calculate the risk? First we create models based on the data these banks and insurance companies provide. An independent third party then validates the models. Of course, disaster could strike – like earthquakes, oil crises or wars – but if you look at our data models and then set aside the recommended amount of money, you're playing it quite safe. You'll be protected against most kinds of financial headwinds.
'Artificial intelligence lets us process and capitalise on financial news so much faster.
Currently I'm working on Eagle Eye, an artificial intelligence technology designed to help us assess credit risks. The technology has its roots in Natural Language Processing: Eagle Eye processes financial news articles in a multitude of languages, not just by 'reading' but also by understanding the material and drawing relevant conclusions. Several components play a role here. One component scans the internet for news about certain companies and feeds the results into a database. Another component applies a logarithm to determine whether those press articles put the company in a positive or negative light. If it's negative, Eagle Eye automatically activates the component dedicated to finding out what the specific threat is. Is this a fraud case, or a lawsuit, or maybe there are production hiccups? If you give Eagle Eye a headline like 'Apple threatening to sue Samsung', it reads that and, like you and me, it understands this means Samsung may have to pay up soon.
By relying on technology rather than manpower to gather this information, we're saving countless hours of reading and recording. Eagle Eye scans thousands of articles in a very short time and is always up to date. It grants us such a near instantaneous insight into tens of thousands of threats for banks and insurance companies that it's almost as if we're assessing their risk in real time. Eagle Eye helps us keep tabs not just on large-cap companies, but also on the next tier of businesses: those small and medium-sized enterprises that regularly make the news. As we've been collecting data since 2008, we have a full decade's worth of context. The daily data stream enables Eagle Eye to improve itself and become more accurate over time. In addition to English, German and Spanish articles, Eagle Eye now also processes Russian and Chinese financial news.
Every single member of my team gets the opportunity to apply their own expertise. What matters is your know-how, not your position or job title. Being the innovative company we are, we're keeping our eyes on the horizon. What will be next? If you like to learn new things every day, and you want to keep developing your skills, Deloitte is the place to be.'
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