Year: 2025
Type: article
Abstract: Artificial Intelligence (AI) and Machine Learning (ML) are transforming financial risk management by enhancing credit, market, and operational risk analysis, stress testing, and scenario modeling. AI/ML enables financial institutions to analyze diverse inputs, identify complex patterns, and improve decision-making while streamlining operations. In credit risk, AI-driven models enhance inclusivity by minimizing biases in traditional credit scoring. Market risk tools predict deviations and minimize losses, while operational risks are managed through compliance-driven, evidence-based AI solutions. Despite challenges such as ethical concerns and data privacy, AI/ML enhances accuracy, efficiency, and resilience in financial management, laying the groundwork for future advancements.
Author: Diksha Jain -
Institution: IILM University Gurugram
Language: English
Subfield: Artificial Intelligence
Field: Computer Science
Domain: Physical Sciences
Open Access status: hybrid
OpenAlex ID: W4408893958