AI in Financial Risk Assessment By A Staff Writer / July 12, 2025 Welcome to your AI in Financial Risk Assessment Level: Expert What is the primary role of AI in financial risk assessment? Automating account opening Identifying and mitigating potential financial risks Tracking customer preferences Reducing transaction times None Which machine learning algorithm is widely used for credit risk modeling? Logistic Regression Convolutional Neural Networks Genetic Algorithms Clustering None How does AI improve fraud risk assessment in the financial sector? By enhancing customer support systems By analyzing transaction data to detect anomalies By generating financial reports By increasing customer loyalty None What role does Natural Language Processing (NLP) play in risk assessment? Extracting insights from financial reports and news articles Creating customer profiles Automating payment systems Building risk-free portfolios None What is a significant challenge in using AI for financial risk assessment? High data storage requirements Ensuring transparency and explainability in AI models Limited computational power Lack of regulations None Time's up
