Predictive analytics is being widely adopted across industries today, but it has also introduced some new risks. In their article for Contingencies, Jonathan Glowacki and Eric Wunder warn that overreliance on data alone can lead to problems. After all, predictive analytics is effective only if the data actually reflect the risk being evaluated. Professionals who utilize predictive modeling should be aware of the limitations of such analysis and should take steps to address any potential data risk.
This article was first published in the July/August issue of Contingencies.