IBM is teaming up with Deloitte Touche Tohmatsu Limited to develop risk management and compliance solutions for the financial services industry.

The two companies outlined their plans in a statement this week, saying Deloitte would provide its expertise in financial services and risk management consulting to assist IBM as it builds a range of cloud-based risk management solutions that combine its Big Data analytics and Watson-as-a-service cognitive computing services. Deloitte will also work with customers to help them integrate the new solutions into their technology architecture.

The initiative is just the latest in an ongoing partnership between IBM and Deloitte that aims to help financial firms use advanced data analysis techniques to improve their practices around risk management, which is the discipline of understanding, and mitigating against, whatever could go wrong in an organization’s plans. Risk management involves gaining an understanding of the conditions that could derail those plans, and working out how much it could cost.

In recent years, financial businesses have been under growing pressure from governments and shareholders to reveal more about how they assess and report potential risks. As a result, enterprise software companies like Oracle and SAP SE have been quick to offer new risk management solutions.

But IBM argues that its advances in data analysis and cognitive computing allow organizations to better understand and report risk factors. Its new solutions include a regulatory compliance and control service that harnesses the abilities of these new technologies, while drawing on Deloitte’s considerable expertise in regulatory intelligence.

For example, the solution can use Watson’s cognitive capabilities to parse through written government regulations and inform businesses if their own frameworks are in compliance. Such analysis can help organizations to reduce the costs of meeting regulatory guidelines like the 2010 U.S. Dodd-Frank Wall Street Reform and Consumer Protection Act, which was designed to bring more transparency to the financial services sector. IBM says that financial service companies are increasingly allocating more of their budgets to meet such requirements.

IBM and Deloitte are also researching how Big Data analysis can be used to help organizations better anticipate risk factors. They say that most unstructured data – corporate e-mail, social networks, server logs and the like – is usually excluded from risk assessments. This data could be aggregated and analyzed in real-time to give financial organizations a much more accurate forecast of events that might happen in the future, the companies say.

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