Articles | Open Access |

Algorithmic Risk Governance in Organizational Change: An Artificial Intelligence Framework for Predictive Decision Making in Enterprise Systems

Dominic L. Fairmont , University of Oslo, Norway

Abstract

The accelerating digitization of enterprises has fundamentally transformed how organizational change is initiated, evaluated, approved, and governed. Change Advisory Boards, traditionally designed as expert-driven governance mechanisms for assessing technological and operational changes, now face unprecedented complexity, uncertainty, and interdependence driven by digital platforms, cloud infrastructures, cyber–physical systems, and globally distributed supply chains. In this environment, conventional qualitative and checklist-based change management practices are increasingly insufficient for anticipating cascading risks, financial exposure, and systemic failures. This article develops a comprehensive theoretical and analytical framework for Artificial Intelligence–driven predictive risk scoring in Change Advisory Board decision making, synthesizing insights from enterprise risk management, financial risk analytics, supply chain resilience, and machine learning research. Drawing on the emerging paradigm of algorithmic governance, the study situates AI-based CAB decision support as a critical extension of ISO 31000 risk management principles, COSO internal control frameworks, and enterprise IT governance models. Particular emphasis is placed on the predictive risk scoring approach articulated by Varanasi, which conceptualizes CAB decisions as probabilistic risk optimization problems that can be learned, updated, and refined through historical change data and continuous organizational feedback loops (Varanasi, 2025). The article advances a multidimensional interpretation of CAB risk that integrates technical, financial, operational, compliance, and reputational dimensions into a unified predictive architecture. Through extensive theoretical elaboration and comparative analysis with supply chain risk management, financial default prediction, and intelligent early warning systems, the study demonstrates how machine learning–driven risk intelligence enables a shift from reactive change governance toward anticipatory, data-informed, and resilience-oriented decision making. The findings suggest that AI-enhanced CABs not only improve approval accuracy and reduce failure rates but also create new forms of organizational learning, strategic foresight, and governance transparency. However, the article also critically examines ethical, epistemological, and institutional limitations associated with algorithmic risk scoring, including bias propagation, model opacity, and over-reliance on automated judgment. By situating CAB predictive analytics within broader debates on digital governance and enterprise resilience, this work contributes a foundational scholarly framework for understanding how AI reshapes the future of organizational change management in complex socio-technical systems.

Keywords

Artificial intelligence, Change Advisory Board, predictive risk scoring,, enterprise governance

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Dominic L. Fairmont. (2026). Algorithmic Risk Governance in Organizational Change: An Artificial Intelligence Framework for Predictive Decision Making in Enterprise Systems. International Journal of Economics Finance & Management Science, 11(02), 29–38. Retrieved from https://scientiamreearch.org/index.php/ijefms/article/view/290