The financial industry faces increasingly complex risks—from macroeconomic volatility and cyber threats to regulatory changes and operational uncertainties. In 2025, AI-powered risk management is emerging as a foundational pillar for financial institutions aiming to navigate this complexity with agility and precision. This article explores how AI is revolutionizing risk frameworks, driving better decision-making, and fostering resilience across banking, investment, and insurance sectors.  Evolving Risk Landscape in a Digital Economy  The expanding digital economy has intensified existing financial risks and introduced novel challenges. Geopolitical tensions, inflationary pressures, and global supply chain disruptions compound market uncertainties, while rapid fintech adoption and digital…

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