AI-Powered Risk Assessment
Wasim Khan, Mohammad Ishrat, Syed Mohd Faisal · Advances in computational intelligence and robotics book series · 2025
Artificial Intelligence (AI) is transforming financial risk management, employing sophisticated computational methods to assess, forecast, and reduce risk. This chapter discusses the potential of AI to change how financial institutions manage risk, its applications, advantages, and the challenges to its implementation. While AI enables precision in risk assessment and decision-making, its adoption introduces complex ethical, technical, and regulatory challenges. The discussion focuses on practical implications, new approaches, and forward-looking aspects for AI-based financial risk management systems.