How does machine learning improve risk management?

How does machine learning improve risk management?

Machine learning enhances risk management by analyzing large datasets to identify patterns and predict potential risks.

Can you give me an example of how it's used in finance?

In finance, machine learning models can predict credit defaults by analyzing historical data and customer behavior.

What are the challenges of implementing machine learning in risk management?

Challenges include data quality, model interpretability, and the need for continuous monitoring and updates.

How can companies ensure the accuracy of their machine learning models?

Companies can ensure accuracy by using diverse datasets, regular validation, and incorporating expert feedback into the models.