This viewpoint highlights the importance of using data-driven risk models to safeguard reputation and improve efficiency in various industries, particularly in the utility sector. With advances in technology, companies are now collecting vast amounts of data about their business processes and assets, but existing assurance processes often fail to utilize this data, leading to false assurance on performance and potential legal implications. Data-driven modeling approaches can better exploit the value of these new sources of data and improve business efficiency by better allocating limited resources. However, there are challenges in turning the collected data into actionable insights, such as data being overlooked or seen as too complex to understand. Overall, the successful application of data-driven risk models in the utility sector has led to improved business efficiency and better allocation of resources.
