Artificial Intelligence for Risk Management

In today's interconnected world, which operates in real time, businesses need robust support to promptly address the rapid changes in an intensely competitive marketplace, which is rife with new and emerging risks that could potentially hinder a company's goal achievement. Artificial intelligence tools are instrumental in bolstering risk management efforts. For instance, neural networks and support vector machines can be leveraged to create an early-warning system to monitor a company's financial standing and to enhance its capacity to evaluate and mitigate market, credit, and operational risks. This chapter intends to delve deeper into the utilization of AI for improving risk management processes and the extent to which risk management tools can benefit from Business Intelligence approaches.