Iuris Dictio

Dossier I

No. 36 (2025)

Use of Artificial Intelligence in Risk Management of a Financial Institution

DOI:
https://doi.org/10.18272/iu.i36.3923
Submitted
June 15, 2025
Published
November 27, 2025

Abstract

The advancement of technology, including the use of Artificial Intelligence (AI) in everyday life, has brought about significant changes and substantial impacts; the same has occurred with electronic transactions and decision-making systems. In this context, the various applications of AI promise several benefits for risk management within financial institutions, aiming for effective control and potential mitigation. The research findings indicate that AI can be an effective system for managing risk in financial entities. However, before implementing it as an information system, it is essential to consider both the positive and negative aspects associated with this technology, such as the use of personal data, the current absence of a regulatory framework, among others.

References

  1. Bostrom, N. (2016). Superintelligence: Paths, dangers, strategies. Oxford: Oxford University Press.
  2. Brown, A. (2016). Financial risk management for Dummies. California: For dummies. https://archive.org/details/financialriskman0000brow/page/n4/mode/1up
  3. European Union Agency for Cybersecurity. (2023). AI cybersecurity challenges: Threat landscape for artificial intelligence. Publications Office of the European Union.
  4. }Hernández-Sampieri, R., & Mendoza, C. (2018). Metodología de la investigación: Las rutas cuantitatriva, cualitativa y mixta. CDMX: McGraw-Hill Education.
  5. Ramli, Ahmad. (2004). Cyber Law dan HAKI dalam Sistem Hukum Indonesia. Bandung: Refika Aditama.
  6. Russell, S., & Norvig, P. (2021). Artificial intelligence: A modern approach (4th ed.). Pearson. California: College of Berkley.
  7. Russell, S., & Norvig, P. (2020). Artificial Intelligence: A modern approach (4th ed.). Pearson.California: College of Berkley.
  8. Artikis, A, Katzouris, N., et al. (2017). A Prototype for Credit Card Fraud Management: Industry Paper. In Proceedings of the 11th ACM International Conference on Distributed and Event-based Systems (DEBS '17). Association for Computing Machinery, New York, NY, USA, 249-260. https://doi.org/10.1145/3093742.3093912
  9. Adamowicz, T. (2018). Types of Risk in Banking Operations – Categorization and Definitions. Economic and Regional Studies / Studia Ekonomiczne i Regionalne, 11(4), 37-56. 10.2478/ers-2018-0034
  10. Goertzel, B. (2020). Artificial general intelligence: Concept, state of the art, and future prospects. Journal of Artificial General Intelligence, 5(1), 1-46 . https://www.researchgate.net/publication/271390398_Artificial_General_Intelligence_Concept_State_of_the_Art_and_Future_Prospects
  11. Haq, S., & Yunanto, Y. (2024) Legal Implications of Using Artificial Intelligence (AI) Technology in Electronic Transactions. International Journal of Social Science and Human Research, 7(5), 3365-3371. https://ijsshr.in/v7i5/Doc/108.pdf
  12. Kaplan, A., & Haenlein, M. (2019). Siri, Siri, in my hand: Who’s the fairest in the land? On the interpretations, illustrations, and implications of artificial intelligence. Business Horizons, 62(1), 15-25. https://doi.org/10.1016/j.bushor.2018.08.004
  13. Sheikh, H., Prins, C., et al. (2023). Artificial Intelligence: Definition and Background. En H. Sheikh, et al. Mission AI, Research for Policy (pp. 15-42). https://doi.org/10.1007/978-3-031-21448-6_2
  14. World Economic Forum. (2023). Artificial intelligence in financial services: Opportunities and risks. https://reports.weforum.org/docs/WEF_Artificial_Intelligence_in_Financial_Services_2025.pdf
  15. Basel Committee on Banking Supervision. (2022). Principles for the effective management and supervision of climate-related financial risks, junio. Bank for International Settlements. https://www.bis.org/bcbs/publ/d532.pdf
  16. Fondo Monetario Internacional. (2025). AI Projects in Financial Supervisory Authorities: A toolkit for successful implementation. IMF Working Paper No. 2025/199 https://www.imf.org/en/Publications/WP/Issues/2025/10/03/AI-Projects-in-Financial-Supervisory-Authorities-570625
  17. OCDE. (2024). Explanatory memorandum on the updated OECD definition of an AI system. OECD Artificial Intelligence Papers No. 8, marzo. https://www.oecd.org/content/dam/oecd/en/publications/reports/2024/03/explanatory-memorandum-on-the-updated-oecd-definition-of-an-ai-system_3c815e51/623da898-en.pdf
  18. Codificación de Resoluciones de la Superintendencia de Bancos. (2017). Normas de Control para las Entidades de los Sectores Financieros Público y Privado. Título IX De la Gestión y Administración de Riesgos, Capítulo I, Sección II, Segunda Disposición General, 31 de agosto. https://www.superbancos.gob.ec/bancos/codificacion-de-normas-de-la-sb-libro-uno-sistema-financiero/
  19. Codificación de Resoluciones de la Superintendencia de Bancos. (2017). Normas Generales para las Instituciones del Sistema Financiero, Libro I, Título X De la Gestión y Administración de Riesgos, capítulo i, sección i, art. 2, número 2.1, 31 de agosto. Norma derogada. https://www.superbancos.gob.ec/bancos/codificacion-de-normas-de-la-sb-libro-uno-sistema-financiero/
  20. Código Orgánico Monetario y Financiero. (2014). Segundo Suplemento, R. O. n.o 332 , 12 de septiembre. Última reforma: Suplemento R. O. 309, 21 de agosto de 2018.
  21. Ley Orgánica de Protección de Datos Personales. (2021). Suplemento del R. O. n.o 459, 26 de mayo.
  22. Reglamento (UE) 2024/1689. (2024). European Parliament and of the Council of 13 June 2024 laying down harmonised rules on artificial intelligence and amending Regulations (EC) No 300/2008, (EU) No 167/2013, (EU) No 168/2013, (EU) 2018/858, (EU) 2018/1139 and (EU) 2019/2144 and Directives 2014/90/EU, (EU) 2016/797 and (EU) 2020/1828 (Artificial Intelligence Act), 13 de junio. https://eur-lex.europa.eu/eli/reg/2024/1689/oj/eng?eliuri=eli%3Areg%3A2024%3A1689%3Aoj&locale=es

Copyright (c) 2025 Cristina Escobar Montalvo, Stephan Mora Valdez

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Most read articles by the same author(s)