Can Textual Analysis of Corporate Filings Predict Business Related Risks?
"Using several examples, the article contrasts these risk sentiments for companies that have been involved in financial fraud and the companies that have not been involved in financial fraud."
“... we provide evidence that setting the risk-weighted ratio at 15\% and the simple leverage ratio at 10% would significantly decrease the probability of default without hampering banks' activities.”
The study investigated how ChatGPT and Bard categorize investor risk profiles compared to financial advisors. While there were no significant differences in the risk scores assigned by the chatbots an
The paper suggests that companies developing high-risk AI systems should demonstrate their safety before deployment, arguing for proactive risk management. It proposes a risk management approach where