Risk Intelligence: AI-Powered Financial Risk Management for a New Era
Year: 2025
Type: article
Abstract: The rapid financial market transformations, such as the increasing complexity and rise of digital transformation have created a great need for such advanced risk management solutions. However, traditional financial risk management techniques that stand out are limited by their dependence on historical data and deterministic models. On the other hand, Artificial Intelligence (AI) and Machine Learning (ML) offer dynamic, data-driven methodologies that can predict, analyze and mitigate real-time risk. This paper examines how AI, big data analytics, and cloud computing are converging to change financial risk management. Using predictive analytics, natural language processing, and deep learning can empower institutions in risk detection, decision-making optimization and regulatory compliance. Case studies of how AI has been successfully used to address different types of risks (market risk, credit risk, operational risk, and systemic risk), together with a discussion about the role of AI in addressing these risks, are provided. The dawn of an AI-driven risk intelligence era is not just about being faster but more forward-looking and becoming a more proactive and stronger navigator of financial uncertainties
Author: Archana Pattabhi
Institution: Citigroup
Language: English
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4411620401