Big Data & Advanced Analytics per il Risk Management

One of the main consequences of the digital revolution, which for the last few years has been transforming almost every economic activity, has been an unprecedented availability of big data. At the same time, recent technological breakthroughs have provided tools (technological infrastructures and analytical methodologies) capable of processing these large amounts of data in a very short timeframe. Against this backdrop, the introduction of machine-learning models has been spreading. Even the Banking and Insurance sectors, despite their long-standing tradition of using statistical models, have been deeply transformed. Such an unprecedented combination of data availability, processing capabilities, and analytical models allows financial institutions to realize value by providing a more informed, timely, and conscious decision-making. The objective of this position paper is to provide the Risk Management community a useful contribution to understand the state of the art in the field of Big Data & Advanced Analytics (BD&AA) for Risk Management. To this end, the paper avails itself of contributions coming from a wide, qualified and, at the same time, heterogeneous (by origin, background, and size of the institution to which they belong) parterre of colleagues and experts.