S3 | E9: How CROs Can Leverage A.I. to Modernize Their Risk Program

In this episode of The Risk Intel Podcast, we explored how AI is reshaping risk management with real-world insights from Joel Castaneda, EVP & Chief Risk Office of Vantage Bank, Texas. Host Edward Vincent, continued the conversation from last week's episode on how business transformation starts with data, and sat down with Joel to discuss how he is leveraging AI to drive efficiency and modernize his risk program. From automating repetitive tasks to improving risk reporting, AI is making an undeniable impact—but only when applied thoughtfully and securely. Listen to the full episode below to learn more or get the summarized highlights below.

Why AI? A Risk Leader’s Perspective

Joel’s journey into AI began with a simple but pressing challenge: too much time spent on manual, repetitive tasks that pulled focus away from high-value risk analysis. Risk Officers and compliance teams are all bogged down with manual tasks like standardizing risk descriptions, compiling committee meeting minutes, and preparing regulatory reports—all of which require precision, consistency, and speed. With this in mind, Joel thought their had to be a better way and started down the path of learning how to leverage AI to improve day to day processes.

“I realized that AI could take these time-consuming processes and automate them in a way that would enhance efficiency without compromising security or accuracy,” Joel explained.

With growing pressure to do more with less, AI presented an opportunity to streamline operations, reduce variability in reporting, and free up teams to focus on strategic risk insights rather than administrative tasks.

AI’s Role in Risk Management

Joel shared how AI is transforming key aspects of risk operations, from risk reporting to committee meeting minutes—saving time, improving accuracy, and ensuring consistency across the board. By strategically integrating AI, risk teams can automate manual tasks and enhance decision-making while maintaining strong governance and security protocols.

"The combination of leveraging large language AI models and implementing Watchtower is a beautiful synergy right now because the platform allows a CRO to configure it to the banks unique risk profile and needs" - Joel Castaneda

Press Release: Vantage Bank Selects SRA Watchtower As Their Business Intelligence Platform For Risk and Financial Insights

Key Takeaways for Risk Leaders

1. ‍Start Small & Scale Thoughtfully – AI isn’t a magic fix; effective use begins with controlled implementations that enhance efficiency without increasing risk exposure. As Joel put it, “The best approach is to start with a controlled use case—something that adds efficiency without increasing risk exposure. From there, institutions can expand AI’s role thoughtfully.”
2. ‍Consistency is Key – AI can create standardized risk descriptions and reports, helping risk officers maintain clarity across their organizations.
3. ‍Security First – Organizations should be cautious about sensitive data inputs and collaborate with security teams before implementing AI solutions. Anytime Joel wants to leverage AI for a new project or automation his first call is to his CISO to gain buy-in and ensure a secure process is in place.
4. ‍AI as an Assistant, Not a Replacement – AI should augment human expertise, not override it. “AI can help teams create consistent risk reports, eliminating variability and saving time for more strategic analysis… the priority is security, governance, and ensuring AI enhances, not overrides, human expertise. 

‍Real-World AI Use Cases

Joel highlighted two major AI-driven improvements:

• ‍Risk Indicator Descriptions – AI-generated descriptions provide consistent, structured insights that help executives quickly interpret key risk metrics. Instead of spending time manually drafting and refining reports, AI ensures clarity and uniformity in risk narratives.
• ‍AI-Powered Meeting Minutes – Instead of waiting weeks for manually compiled minutes after a risk committee meeting, AI enables near-instant, professionally formatted summaries—a game-changer for efficiency. “We used to spend days cleaning up notes from meetings,” Joel shared. “Now, AI can generate structured minutes almost immediately, which keeps teams aligned and moving forward.”

Try it For Yourself: Risk AI Prompt Examples

Joel has provided our listeners with two examples of system instructions he uses to set up AI to generate content. Try playing around with some of these risk related AI prompts next time you are playing around in ChatGPT or preferred AI program.

Prompt #1 Writing Top Risk Statements

Write Top Risk statements as follows:

Write out a "Business Objective", then write out the Top Risk in an "Executive Risk Summary" form, and then write out the Top Risk with "Detailed Risk Description": 

Executive Risk Summary: The risk that [detail the risk event as a probable action statement], caused by [detail what could cause the risk event], may result in [detail the impacts of the risk event].  Each [X], represents a generated response based on the risk scenario posed, in relation to the business objective. 

Business Objective: [X] based on the scenario proposed.

After you have written the executive summary and business objective, write out the full detail of the risk using the following instructions: 

Detailed Risk Description: In the form of a paragraph, begin by clearly identifying the specific risk, including its nature and scope [Insert Risk Identification]. Describe the underlying factors or events that could lead to the risk materializing, considering both internal and external contributors [Insert Cause]. Outline the potential consequences of the risk, focusing on its impact on the bank's business objectives, financial performance, reputation, or regulatory compliance [Insert Potential Impact]. Provide additional context or background information to understand the risk's significance, such as industry trends or economic conditions [Insert Contextual Detail]. Consider the risk in a forward-looking manner, addressing how it might evolve over time and what future developments could influence its impact or likelihood [Insert Future Context]. Connect the risk to the bank's strategic goals or business objectives, highlighting how it could hinder their achievement [Insert Business Objectives]. Briefly mention any existing or potential strategies for mitigating the risk, including controls, processes, or contingency plans [Insert Mitigation Considerations]. Identify which stakeholders are most likely to be affected by the risk and how their interests might be impacted [Insert Stakeholder Relevance].

Prompt #2 Writing Right Acceptance Statements

The video above shows how fast ChatGPT or AI can write our your Acceptance Statements, think about all the time saved! Enter the below AI prompt to see it in action for yourself!

In paragraph form: When crafting a risk acceptance statement, begin by clearly identifying the specific risk, including its nature, scope, and potential impact on the organization [Insert Risk Identification]. Justify the rationale for accepting this risk, considering strategic, operational, or financial reasons [Insert Rationale for Acceptance]. Ensure alignment with the organization's risk appetite and tolerance levels [Insert Risk Appetite Alignment]. Conduct an impact assessment to evaluate potential consequences, both positive and negative [Insert Impact Assessment]. Outline the process for ongoing monitoring and review to ensure the decision remains valid [Insert Monitoring and Review]. Develop contingency plans to address the risk if it materializes [Insert Contingency Plans]. Document the decision, including approvals from relevant stakeholders [Insert Approval and Documentation]. Finally, communicate the risk acceptance decision to all relevant parties within the organization [Insert Communication].

Final Thoughts

For risk leaders, the message is clear: AI is here, and it’s making an impact. But successful adoption requires a measured, secure approach. “Get buy-in from your CISO or security team, experiment thoughtfully, and embrace AI’s ability to scale your efforts.”

As AI continues to evolve, risk professionals who adopt it strategically will gain a competitive edge, improving both operational efficiency and risk oversight.

Interested in hearing the full conversation? Listen to the latest Risk Intel episode now.

Missed Part 1 of this conversation with Vantage Bank? Click here

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