The Impact of Artificial Intelligence on Enterprise Risk Management

The rapid development of Artificial Intelligence (AI) has profoundly influenced various aspects of enterprise operations, particularly in the field of risk management. As organizations face increasingly complex, dynamic, and interconnected risk environments, the integration of cutting-edge AI technologies offers new opportunities as well as challenges for identifying, assessing, and mitigating multifaceted risks. This paper explores the impact of AI on enterprise risk management (ERM) by reviewing relevant theories, analyzing practical applications, and discussing associated risks and challenges. Through case studies in financial services, supply chain management, and cybersecurity, the research demonstrates that AI enhances risk detection, improves decision-making, and increases operational efficiency. However, the widespread adoption of AI also introduces new risks, such as algorithmic bias, data privacy concerns, and model transparency issues. The study concludes that while AI significantly advances ERM, organizations must adopt robust, proactive governance frameworks to address these emerging challenges and ensure responsible deployment of AI.