Humans are biased, emotional, and tired. AI is the ultimate Risk Manager because it can audit 100% of decisions against a set of statistical probabilities. Using AI not just to generate ideas but to kill bad ideas is the highest ROI activity for a leader.
What is Algorithmic Risk Management?
Algorithmic Risk Management is the practice of running every strategic decision (pricing, hiring, pivoting) through an AI model tasked with finding the "Pre-Mortem" (how this will fail). It turns optimism (a founder's weakness) into calculated risk (a founder's strength).
The Red Team Workflow
Step 1: The Thesis
You propose an idea. "I want to launch a $50 course."
Step 2: The Attack
The AI (Persona: Vicious VC) attacks the idea with data. "The market is saturated. Your price is too low."
Step 3: The Defense
You refine the idea to answer the attacks.
Step 4: The Ratification
Only when the idea survives the AI, do you execute.
Short Answer
Don't use AI just to "Create" (Yes Man). Use AI to "Criticize" (No Man). A model that tells you why you are wrong saves more money than a model that writes your emails.