Impact Of Big Data On Risk

Big Data can be used to negate or avoid risks that come with owning or running a company, one of the ways Big Data is used is with Market risks. A Market Risk is "the risk of an investment losing value due to changes in the market" the way big data can be used is to view how the market has changed and how volatile it may be, to see if the investment you may want to take is really worth the risk. Another way it can be used for market risks is by showing you how other people did when investing for the same thing, it can show you what profit they made (if any) and how long it took for that profit to be made.

Another risk Big Data can be used to avoid is with Credit Risks, a Credit Risk is when a company allows a consumer to finance an item, meaning that if a customer wants whatever the company is selling then they can have it straight away but pay for it on a term by term basis, meaning weekly/monthly/yearly with a certain percentage of mark-up, the risk here is that the person buying the product on finance may not be able to afford at some point to pay when then have to and this where big data comes in. Big Data can be used to look at someone's credit history where it shows if the customer has ever been late on a payment or unable to make a payment, all of this affects their credit score which is what companies can look at to see if they can finance the item to them and make a bigger profit.

Big data can also help avoid Operational Risks, an Operational Risk is risk