Digital transformation and the AI landscape, including the increasing use of agentic AI, are core drivers of enterprise value and are increasingly a source of material credit risk. For credit professionals, the impact often shows up too late: Operational disruptions rapidly give way to liquidity constraints and performance deteriorates.
This session reframes digital transformation as a new avenue of credit risk, where both opportunities (enhanced productivity) and risk (customer operational disruption and financial loss) must be assessed alongside traditional financial metrics. Through real-world examples, including operational disruptions, ransomware events, and system outages, the speakers will explore how digital breakdowns can quickly magnify credit risk. The speakers will also review the best practices for AI policies and procedures as well as the use of additional tools, such as credit applications, terms and conditions, and monitoring practices to reflect and mitigate digital and AI risks.
Speaker:
Kathleen A McGee, Partner - Lowenstein Sandler LLP