AI Meets Risk Management: A Literature Review on Methodologies and Application Fields

Over the years, various publications have been made in risk management application areas, many of which have addressed the use of artificial intelligence (AI) tools. Given the increasing importance of sustainability in society and in business, risk management has enjoyed significant popularity in this area in recent years. This paper comprehensively reviews the existing literature of recent years and synthesizes it in a two-step approach. As a first step, unified definitions of the diverse terms in risk research are introduced, which are derived from related work to setup a basic ground line. Following up on this, the established methods and techniques of risk management are presented, which are primarily reduced to proven manual approaches. For this purpose, sustainability risks are given special consideration with attention to risk management techniques in this field. In the second step of this paper, the relevance of the application of AI in risk management is considered by outlining the different areas of application focusing on this combination. Arising from these application areas, the approaches that have made use of AI tools are reviewed along with exploring potential research gaps. Finally, theoretical implications and the future work within risk research combined with AI tools are derived.