Lately I have been thinking - how risk folks could leverage the latest Generative AI?
Letās look beyond the limitations of current tools - assuming things like accuracy and security will be addressed in future solutions.
Here are 7 tasks you could get help on.
1ļøā£ Ask for resource recommendations
Here are some questions I got asked in the last 12 months. Now you can ask FrankAI (or whatever name of the AI tool):
āWhich risk management books should I add on the reading list for my analysts?ā
āAny good resources such as books, blogs on how to manage an auto loan portfolio?ā
2ļøā£ Gain quick descriptive insights
You link the AI tool to the data spreadsheet. Then simply ask questions.
āHow is this weekās origination doing?ā
āAny portfolio credit quality changes in the latest monthly numbers?ā
3ļøā£ Write a model documentation
Based on model output from statistical tools, you can have AI to write a semi-finished model documentation.
Of course you need to give an outline - what components to include in each section. Then have humans to review and edit.
Now audit / model vetting teams can use AI tools to review the documentation - to see if key components are missing vs. guidelines.
Model documentation AI vs. audit AI. Nice.
4ļøā£ Perform a portfolio review
Link AI tools to a set of reports. Tell AI what key metrics to watch, and which periods to compare (M/M, Y/Y).
Ask for a portfolio review report in Word or PowerPoint.
You can control the length - within 500 words or 5 slides.
5ļøā£ Produce a benchmark report
Ask AI tools to scan the latest quarterly financial releases from the specified 10 peer lenders.
Then produce a report with key metrics such as loan balance, delinquency rate, and loss rate.
Including graphs and memos to highlight your institutionās performance vs. the benchmark.
6ļøā£ Learn a particular topic
The financial world is spinning faster. Use AI to help you up-to-date.
āTell me the opening banking developments in the US in the last 6 months.ā
āWhat is this Silvergate crypto run thing? Explain to me in simple terms in 400 words.ā
7ļøā£ Get help for your career search/hiring
Hiring managers can use AI to write better job descriptions, create a list of interview questions.
Candidates can use AI tools to write resumes, research companies and opportunities, prepare for interview questions - all based on your unique experience.
The list could go on ... your imagination is the limit.
How do you like the prospect of AI assistance in the near future?
What other use case would you like to get help on?
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