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Artificial intelligence in financial risk management: A critical comparison of approaches and innovations – Part 1
Journal of AI, Robotics & Workplace Automation,
3
(4),
293-320
(2025)
Abstract
Artificial intelligence (AI) is revolutionising financial risk management by providing innovative tools to address diverse challenges. In two papers in the series ‘Machine Finance’ the author critically examines the integration of AI technologies into the financial sector, emphasising its applications in managing risks such as credit, market, operational and compliance. This highlights the transformative potential of AI-driven models and analytics, which offer enhanced precision, real-time monitoring and robust predictive capabilities. Additionally, this study explores the ethical and regulatory challenges associated with AI adoption, particularly within frameworks such as the European Union (EU) Artificial Intelligence Act (AI Act). By comparing traditional risk management methods with AI-enabled approaches, this paper aims to provide practical insights into the future of financial stability and resilience through advanced AI-driven strategies. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.
Keywords: artificial intelligence; AI; financial risk management; credit risk; EU Artificial Intelligence Act; AI Act; predictive analytics
The full article is available to subscribers to the journal.
Author's Biography
Jörg Orgeldinger Dr Jörg Orgeldinger holds an MSc in business/finance from Goethe-Universität Frankfurt, a Master’s degree in business administration from Edinburgh Business School, a PhD from Leopold Franzius University, Innsbruck, a postgrad telecom degree from the University of Berkeley (USA) and various certifications, including Certified Forensic Financial Analyst (CFFA), Certified Merger and Acquisition Professional (CMAP) and Certified Valuation Analyst (CVA) from the US. Jörg holds advanced degrees in artificial intelligence (AI) from prestigious institutions such as Stanford (USA) Wharton (USA) INSEAD (France) Duke (USA) Darden (USA), Vanderbilt (USA) and Politecnico di Milano (Italy). Additionally, he has earned nearly all major professional certifications in digital technologies from leading organisations, including IBM, Google, SAP, Meta, Amazon Web Services (AWS), Intel, Microsoft, CertNexus, Palo Alto, Siemens, Unilever, etc. Jörg is an economist and data scientist specialised in quantitative and financial modelling. He has 20 years’ experience working for some of Europe’s biggest financial institutions. Jörg started his career in banking/finance for West LB Düsseldorf and database analytics for financial institutions and worked all over Europe (Zürich, Amsterdam, London, Luxembourg, Milan, Munich, etc.). He has worked as an independent consultant for UBS, Hamburg LB, Lloyds Banking Group, ABN AMRO, Unicredit, Sal. Oppenheim, Commerzbank, MM Warburg, HSBC, GE Capital, Accenture, among others, on some of the banking industry’s biggest projects within provisioning and credit risk. Jörg also has a background in management consulting with Accenture and McKinsey.
