AI and risk management

Together with Dr Nadine Gerhardt-Huber (Helmut Schmidt University), the Dr Werner Jackstädt Foundation Endowed Chair of Accounting and Control is investigating what role risk management can and should play in AI-based forecasting.

By analysing historical data and current market conditions, AI can provide insights into potential risks. Whether it's identifying volatile investments or predicting economic downturns, AI helps the finance function to proactively manage risk and protect assets and investments through greater accuracy, faster decision-making, improved efficiency and enhanced risk detection.

At the same time, the use of AI for risk management comes with some challenges such as data quality, interpretability, robustness of the model and over-reliance on AI.