Financial Risk

Financial risk assessment aims to predict and mitigate potential losses in financial systems, focusing on improving the accuracy and timeliness of risk identification. Current research heavily utilizes machine learning, particularly neural networks (including variations like backpropagation and graph attention networks), and large language models to analyze diverse data sources, such as financial statements, transaction records, news articles, and even social media sentiment. These advancements are crucial for enhancing credit risk management in banking, informing sustainable finance initiatives by assessing nature-related risks, and improving the accuracy of financial predictions while mitigating biases in algorithmic decision-making.