Unlocking the Potential of Artificial Intelligence: Revolutionizing Financial Risk Management with Enhanced Decision-Making and Mitigated Risks

The growing significance of intelligent technology (AI) in the context of handling financial risks is examined in this study. The essay analyses the drawbacks of using conventional risk management techniques and gives a summary of the theoretical underpinnings of financial risk management. The literature research section sheds light on the various ways artificial intelligence is being used in the field of managing financial risk. Credit risk, market risk, organisational risk, and liquidity risk are some of these uses. The essay also discusses the advantages and difficulties of using artificial intelligence to financial risk management. The benefits of using AI include improved speed and accuracy in risk identification, surveillance, and mitigation. The study also highlights a number of difficulties, including the requirement for extremely high-quality data, the possibility of computational bias, and the existence of societal issues. According to the research, intelligent technology (AI) has the potential to drastically alter the financial risk management industry by improving capacity for decision-making, minimising risks, and improving efficiency. However, to fully leverage these advantages, it is essential to skillfully negotiate the obstacles associated with the incorporation of AI into the domain of financial risk control. This study provides a thorough examination of artificial intelligence's function in financial risk management, stressing both the benefits and drawbacks of its application. For decision-makers, risk managers, and financial institutions looking to integrate AI into their risk management plans, this paper is an invaluable resource.