Why is News API So Critical To Risk Intelligence?
Companies make money by taking risks and lose money by failing to manage them. This has always been the reality of any business since the dawn of time. But the complexity and constant change in today’s world has increased risk in all areas of business. From environmental risks that threaten supply chains, to third-party risk, organizations are always looking to integrate risk management solutions that will cover the full range of risks they’re facing, both within and outside their walls.
It is within this changing risk landscape that risk intelligence has emerged, helping risk teams to keep up with new challenges.
What is risk intelligence and what is it used for?
Risk intelligence helps organizations stay ahead of the game. It arms relevant stakeholders with vital information about emerging risks, helps them make informed decisions, and integrate risk management solutions.
Some of the key risks companies are facing today include:
- Legal and regulatory – such as AML and KYC
- Data leaks
Today, risk intelligence is crucial to organizations of all sizes and industries. Each organization tailors its risk management practices to its needs. From a multinational bank to a small celebrity PR firm, the future of any business lies in its ability to prevent, mitigate emerging risks and integrate risk management practices.
The growing challenge to effective risk intelligence: Data
The foundation of any risk intelligence system is information or data. The problem is that when it comes to risk, the dataset is huge and keeps growing. Take for example external data, it is estimated that tens of thousands of new risk records are published on public and governmental sources daily. The same goes for news data. According to a 2020 International Journal on Digital Libraries study, an average of 6,000 English news articles are published in a day. That makes about 180,000 articles a month and doesn’t take into account blurbs, news items, aggregated news bulletins, or the vast myriad of news data that is not in English. It is simply impossible for risk teams to sift through this scale of data, record it, assess it, and provide actionable insights.
This means that many risk teams today use automated risk intelligence software to track digital sources and translate risk data into useful information for risk analysis. But getting the right data is just as crucial.
News API: The power behind leading risk intelligence solutions
Keeping up with risk events and records in real-time is a big task. Over the past years, news has become a leading data source in managing this huge task. From supply chain risks to reputational risks, critical insights are regularly generated from news content.
To gain actionable insights in real-time, a risk intelligence solution needs to scan millions of articles from across the globe. The right News API can assist with easily integrating all relevant data sources at the right time.
How can you tell which News API is the right one?
Let’s use these three criteria for evaluating data for risk intelligence:
- Coverage – The only way to prevent blind spots and miss critical risk events is to maximize your reach with data coverage that includes news sources from multiple counties, in multiple languages, and historical data going back a decade.
- Latency – A good risk intelligence data stream needs to be noise-free and includes the latest data that’s constantly gathered and updated by adaptive web crawlers.
- Quality – Like the devil, the risk is in the details. This means that a superior risk intelligence solution will need enriched data that helps you gain key insights and the right context with full text, along with clean metadata that includes entities, sources, categories, author names, publication dates, and more.
Whether there’s a sudden tsunami in Japan that could impact a business summit in Brussels or a wildfire in California that could disrupt the supply chain of a company based in Tokyo, the right News API will give your risk team the edge.
Webz.io’s News API consumes data from millions of sources, in more than 170 languages, from across the internet, on a constant basis. It uses NLP to assess the meaning and sentiment behind every news article, and structures and enriches the data so that it can be easily integrated into risk intelligence software. Equally as important to risk intelligence, our News API goes deep and long, crawling through 5TB of data from news, dating back to 2008. Real-time news is vital, but being able to reach into the past, see patterns, and understand where threats begin is just as vital.
Find out how Webz.io can help your risk intelligence solution to stay ahead of every risk, talk to one of our data experts today.