Research Article

Role of Generative AI in Reshaping RIsk Mangement in Banking and Financial Oversight

by  Ritu Sharma
journal cover
International Journal of Computer Applications
Foundation of Computer Science (FCS), NY, USA
Volume 186 - Issue 79
Published: April 2025
Authors: Ritu Sharma
10.5120/ijca2025924698
PDF

Ritu Sharma . Role of Generative AI in Reshaping RIsk Mangement in Banking and Financial Oversight. International Journal of Computer Applications. 186, 79 (April 2025), 7-12. DOI=10.5120/ijca2025924698

                        @article{ 10.5120/ijca2025924698,
                        author  = { Ritu Sharma },
                        title   = { Role of Generative AI in Reshaping RIsk Mangement in Banking and Financial Oversight },
                        journal = { International Journal of Computer Applications },
                        year    = { 2025 },
                        volume  = { 186 },
                        number  = { 79 },
                        pages   = { 7-12 },
                        doi     = { 10.5120/ijca2025924698 },
                        publisher = { Foundation of Computer Science (FCS), NY, USA }
                        }
                        %0 Journal Article
                        %D 2025
                        %A Ritu Sharma
                        %T Role of Generative AI in Reshaping RIsk Mangement in Banking and Financial Oversight%T 
                        %J International Journal of Computer Applications
                        %V 186
                        %N 79
                        %P 7-12
                        %R 10.5120/ijca2025924698
                        %I Foundation of Computer Science (FCS), NY, USA
Abstract

This article looks at how generative AI systems are changing risk management strategies in the banking and financial services industry. It explains how AI is being used for real time risk analysis, fraud prevention, and regulatory risk control. Based on practical examples, the article outlines the opportunities and challenges of using AI in the management of financial risks and presents an overview of the changing risk management paradigm in the age of artificial intelligence.

References
  • Bussmann, N., et al. Artificial Intelligence in Finance: The State of the Art and Future Challenges. Journal of Banking and Financial Technology, vol. 4, no. 2–3, 2020, pp. 81–91, https://doi.org/10.1007/s42786-020-00023-7.
  • Banna, H., et al. Machine Learning in Banking Risk Management: A Systematic Literature Review. Journal of Risk and Financial Management, vol. 15, no. 2, 2022, p. 84, https://doi.org/10.3390/jrfm15020084.
  • Fuster, A., et al. Predictably Unequal? The Effects of Machine Learning on Credit Markets. The Journal of Finance, vol. 77, no. 1, 2022, pp. 5–47, https://doi.org/10.1111/jofi.13092.
  • Gupta, R., and Gregoriou, G. N. Machine Learning for Risk Management: A Review. Journal of Risk and Financial Management, vol. 14, no. 11, 2021, p. 540, https://doi.org/10.3390/jrfm14110540.
  • Min, W., and Wang, Y. The Application of Artificial Intelligence in Commercial Banks’ Risk Control. Complexity, 2021, Article ID 5573463, pp. 1–12, https://doi.org/10.1155/2021/5573463.
  • Kumar, V., et al. Artificial Intelligence and Big Data Analytics for Risk Management in Banks: A Bibliometric Review. Expert Systems with Applications, vol. 202, 2022, p. 117213, https://doi.org/10.1016/j.eswa.2022.117213.
  • He, X., et al. Research on Risk Management of Commercial Banks Based on AI Technology. Journal of Physics: Conference Series, vol. 1744, no. 2, 2021, p. 022019, https://doi.org/10.1088/1742-6596/1744/2/022019.
  • Giudici, P., et al. Predicting Bank Crises Using Machine Learning: The Role of Offline and Online Reviews. Emerging Markets Review, vol. 48, 2021, p. 100773, https://doi.org/10.1016/j.ememar.2021.100773.
  • Meles, A., et al. The Synergy of FinTech and AI in Banking Risk Management. Journal of Risk and Financial Management, vol. 15, no. 9, 2022, p. 402, https://doi.org/10.3390/jrfm15090402.
  • Park, C., and Shin, H. AI-Based Operational Risk Management in Banking. Decision Support Systems, vol. 146, 2021, p. 113556, https://doi.org/10.1016/j.dss.2021.113556.
Index Terms
Computer Science
Information Sciences
Generative AI
Finance
Risk Management
Keywords

Risk Mitigation Compliance Governance

Powered by PhDFocusTM