RISK INSIGHT - AI-Powered Enterprise Risk Management Platform
Author : CA Harshal Vibhakar Anjaria
1. Problem Statement
SEBI LODR mandates structured risk governance for listed entities, yet no affordable implementation tool exists for Indian SMEs, mid-caps, and unlisted promoter-driven groups. Existing practice relies on disconnected Excel sheets and Word memos — manual, time-consuming (3–4 days per quarter), audit-fragile, and devoid of decision-grade analytics. Enterprise GRC(Governance, Risk and Compliance) suites cost between ₹25–80 lakh per annum and need 6–9 months to deploy, creating a structural accessibility gap.
2. Solution Overview
Risk Insight is a single-file HTML application that delivers a complete Enterprise Risk Management platform — risk register, dashboards, heat maps, period-on-period analytics, Board pack, and AI-generated narrative — with zero server, zero installation, and zero subscription. It runs entirely in the user’s browser, stores data privately in localStorage, and is deployable within 60 minutes.
3. Core Features
- Pre-loaded risk library: 80+ default risks across 7 categories (Strategic, Financial, Operational, Compliance, Reputational, Cyber & Data, ESG). Facility to add new category and change weight also available.
- 36 sector presets: CGD, Oil & Gas, Steel, Aluminium, Cement, Pharma, Banking, NBFC, Insurance, IT, SaaS, Auto, FMCG, Real Estate, Infra/EPC, and 21 more — each with sector-calibrated Likelyhood / Impact scores and tailored risk descriptions.
- Real-time dashboard: Composite Risk Index (0–100), 5×5 heat map, control-adequacy view, Top-10 risks, category-vs-appetite chart, governance scorecard, and seven categories of decision-flag alerts.
- AI Board narrative: Anthropic Claude AI generates an ready narrative commentary neatly calibrated to company, sector, period, and the actual Critical/High risks in the register.
- Governance controls: Optional password-protected period lock, read-only comparative-period snapshot, multi-company isolation, JSON backup/restore, and Google Sheets sync.
- One-click exports: Word Board Pack (.docx, in-built OOXML writer), Excel workbook (.xlsx, 4 sheets), print-to-PDF, and structured JSON for reviewer hand-off.
4. Technology Stack
| Layer | Components |
| AI / LLM | Anthropic Claude Sonnet 4.5. | BYOK architecture — the user supplies their own API key, stored only in browser localStorage and transmitted directly to api.anthropic.com (no intermediate server). Deterministic template-based narrative is used as fallback when no key is configured. |
| Front-end | Single-file HTML/CSS/JavaScript (~9,400 LOC, vanilla JS, no framework, no build step). Themed via CSS variables with light/dark mode. | |
| Visualisation | Chart.js 4.4.0 for radial gauge, control-adequacy and distribution charts. Hand-rolled SVG heat map and category-vs-appetite chart. | |
| Document export | SheetJS (xlsx 0.18.5) for the Excel workbook export. In-house OOXML writer (custom ZIP + Word XML packer) for the .docx Board Pack — no docx library dependency. | |
| Persistence | Browser localStorage with per-company isolation (one key per entity). JSON export/import for backup, device migration, or sharing with a reviewer. | |
| Security | Period-lock password hashed with SHA-256 via Web Crypto API. 100% offline data flow (only the AI narrative call leaves the device, and only when the user clicks Generate). | |
| Integration | Optional Google Apps Script endpoint for one-click Google Sheets sync. No backend, no database, no vendor lock-in. |
5. Methodology
- Workflow: Sector preset selection → score Likelihood × Impact × Control → AI processes residual exposure → Dashboard updates live → one-click Board pack.
- Scoring framework: Inherent Risk = Likelihood (1–5) × Impact (1–5) → 1–25 scale; bands are Critical ≥ 20, High ≥ 13, Medium ≥ 6, Low < 6. Residual Risk is adjusted for Control Adequacy (1–5). Composite Risk Index (CRI) is the weighted average across the seven categories, normalised to 0–100 using Board-approved weights. User can change the pre-coded L*I scores and control measures based on case to case basis applicable in their company.
- Period tracking: Lock-on-snapshot captures the current period as a read-only comparison base; rollover advances FY/Quarter while preserving the snapshot. The tool auto-classifies movement into Escalated, Worsened, Unchanged, and Improving — feeding directly into the Board narrative.
- Decision flags: Risks above appetite, critical without owner, near-due target dates, recently-escalated movements, and stale assessments are surfaced as colour-coded alerts so the Audit Committee sees the priority queue at a glance.
6. Differentiation
Risk Insight provides built-in compliance, automated narrative, real-time analytics, minimal cost, and full offline capability—unlike Excel-based methods or costly enterprise GRC tools.
7. Conclusion
Risk Insight converts risk reporting into a decision-support system, eliminating cost barriers and enabling structured governance for Indian corporates.
