What can blockchain do for your risk management?
Immutability, transparency and blockchain private ledger aim to provide business advantage in risk management industry.
In a quest for real life blockchain implementations, risk management is also looking for ways to use the promises of blockchain to better serve their risk management clients.
Some of the main features of blockchain technology are immutability, transparency, security, distributed ledger and many other technological and cryptographic elements. As risk management industry is exploring the potentials of blockchain technology, few blockchain elements are being considered as the front runners for the ideas and implementations.
Immutability in Risk Management
Following trends in business is crucial for insights on what’s going on the market we’re in. Future, of course, is something that is always changing and we cannot control directly. However, we can have an influence on the future with better management of the history and staying on top of present.
The history, as it stays the same, we can use to better understand our present and future business. To ensure business history stays forever unchanged, for the purposes of conducting a solid business, the immutability of blockchain can serve as the platform to provide an audit trail feature.
In business that means that every operational transaction is captured in the system as it is, unchanged and forever documented, without the option to delete it or any other way tamper with the information. In risk management, an audit trail is the process of ensuring data integrity, an operational history “written in stone”.
Public vs Private Ledger
Blockchain was first designed as a public ledger, where everyone could see the content on the chain. As more enterprises join the blockchain revolution, private chains are being developed, meaning each organisation can also implement private blockchain for the purposes of running their own business process and ecosystem on the blockchain.
In risk management, main stakeholders are a part of the company’s structure. That would enable private blockchain to enter organisational process, choosing their own consensus algorithm and enable stakeholders to make contributions according to the rules, specified in the organizational smart contract.
Transparency as Business Advantage
One of the aims of Silver Bullet Risk is empowering stakeholders. Blockchain technology and its feature of transparency can help underlie the platform to enable all who participate in the business process to be able to track, understand, audit and provide an input to maximize risk management work efficiently and with that participate in the final assessment of risk management in the organisation.
Having that kind of transparent internal business processes can lead to a smother business operations, eliminating mistakes and supporting efficiency of all stakeholder and company at large.