Integrating Artificial Intelligence with KMV Models for Comprehensive Credit Risk Assessment

Authors

  • Kangming Xu Santa Clara University
  • Biswajit Purkayastha Cihan University Sulaimaniya

DOI:

https://doi.org/10.5281/zenodo.14077150

ARK:

https://n2t.net/ark:/40704/AJSM.v2n6a04

Disciplines:

Finance

Subjects:

Risk Management

References:

20

Keywords:

Risk Management, Intelligent Algorithm, Financial Credit Risk, KMV Model Building, Cloud Computing

Abstract

With the continuous development of artificial intelligence and various new intelligent algorithm technologies, the business contacts between various institutions within financial enterprises are gradually increasing, and traditional financial risk management can no longer adapt to the current status quo in the era of big data. The lack of information sharing among institutions can reduce the efficiency of financial management and adversely affect the operation of enterprises. At present, financial credit risk mainly includes credit risk, market risk and operational risk. Credit risk relates to the possibility that a borrower will not be able to repay loans or debts on time, market risk covers potential losses caused by market volatility, price changes and adverse events, while operational risk includes risks such as internal operational errors, technical failures and fraud, which may adversely affect the normal operations and financial condition of a financial institution. These risk factors need to be integrated and managed in the financial sector to ensure financial stability and customer trust. Therefore, this paper aims to establish a KMV financial credit risk model, continuously strengthen the internal risk management of enterprises, achieve management modeling and a good KMV algorithm mechanism, and realize the cooperation and stickiness between customers and enterprises, so as to avoid unnecessary financial risks.

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Author Biographies

Kangming Xu, Santa Clara University

Computer Science and Engineering , Santa Clara University, CA, USA.

Biswajit Purkayastha, Cihan University Sulaimaniya

Department of Computer Science, Cihan University Sulaimaniya, Sulaimaniya, Iraq.

References

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Published

2024-11-16

How to Cite

Xu, K., & Purkayastha, B. (2024). Integrating Artificial Intelligence with KMV Models for Comprehensive Credit Risk Assessment. Academic Journal of Sociology and Management, 2(6), 19–24. https://doi.org/10.5281/zenodo.14077150

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