Application of Artificial Intelligence in Financial Risk Management in a Company

Abstract

With the continuous development and complexity of financial markets, financial risk management is facing unprecedented challenges. Traditional risk management methods are no longer able to meet the increasingly complex and changing financial environment. The innovative application of artificial intelligence (AI) in financial risk management is becoming a hot topic in research and practice. This article provides an overview of the definition, types, and limitations of traditional methods in financial risk management. It then analyzes the specific application of AI in financial risk identification, assessment, monitoring, and reporting, and explores how AI can help establish more intelligent risk prediction models and its key role in real-time risk management decision support. Looking ahead to the innovative opportunities brought by the integration of artificial intelligence and blockchain technology for financial risk management, such as the automation of smart contract execution, the improvement of supply chain transparency, and the potential in financial inclusiveness. Through analysis, the aim is to provide a comprehensive perspective for financial institutions and related researchers to better understand and apply innovative practices of AI in financial risk management.