In this Article, Professor Kenneth Bamberger explores the development of the automation of compliance with laws mandating risk management. While new technology systems offer powerful compliance tools, they also bring considerable danger. Professor Bamberger discusses the failure of risk regulation to address these new dangers and proposes specific reform measures for policy makers revisiting the governance of systemic risk.

Professor Bamberger addresses the dangers associated with compliance technology because regulators have lauded the new developments while ignoring their perils. To rectify this problem, he argues for more activist regulator oversight backed by sanctions before disaster has occurred. Additionally, Professor Bamberger emphasizes collaboration in developing risk-management systems, drawing both on the granular expertise of firms and the broader vantage of administrative agencies. Finally, he seeks better to reflect the human decision-making element by recognizing the ways in which technology can hinder good judgment, reintroducing human inputs in the decision process, and reflecting the limits of both human and computer reasoning.