TITLE:
Leveraging Artificial Intelligence in Financial Risk Management: Applications in Large Financial Institutions
AUTHORS:
Zixin Feng, Xiao Liu, Wenzhou Yuan
KEYWORDS:
Artificial Intelligence (AI), Financial Risk Management, Large Financial Institution
JOURNAL NAME:
Journal of Financial Risk Management,
Vol.14 No.2,
June
10,
2025
ABSTRACT: This paper explores the transformative role of artificial intelligence (AI) in financial risk management practices within financial institutions. By leveraging machine learning and large language models, institutions can enhance their ability to detect, assess, and mitigate various types of risk. The paper presents applications of AI in market risk, credit risk, liquidity risk, and operational risk, supported by real-world case studies. It also discusses regulatory considerations, ethical implications, and implementation challenges, offering a forward-looking view on integrating AI into financial risk frameworks.