Opportunities and challenges of AI in financial risk management: A brief labour-centric analysis
A Brief Labour- Centric Analysis
Abstract
This study examines the significant impact of artificial intelligence (AI) on financial risk management. As financial markets become more interconnected, AI adoption has become an essential requirement. AI-driven risk management systems enable financial institutions to streamline operations, adhere to regulatory standards and navigate the complexities of the financial environment. The study uses existing literature on AI’s opportunities and challenges; primarily corporate study reports and journal articles to discuss future policy implications. AI’s impact extends beyond quantitative evaluations, permeating a culture of innovation and adaptability within financial organizations. The use of natural language processing, machine learning and predictive analytics allows banks to revolutionize risk management strategies. AI enables proactively predicting potential challenges, enhancing the precision and efficacy of risk evaluations. This proactive approach is vital for sustaining growth and resilience in an ever-evolving financial landscape. Investing in AI technologies not only safeguards operations against uncertainties but also redefines the future of the finance and banking industries. The seamless integration of AI into risk management processes positions the financial sector as more secure, efficient and innovative. Cultivating a workplace culture that equips employees with the necessary skills and expertise to leverage AI technologies effectively is crucial. This study highlights the crucial role of AI in financial risk management and its role in securing the future of financial systems, with labour welfare in the centre.
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