We explore how machine learning and artificial intelligence (AI) solutions are transforming risk management. A non-technical overview is first given of the main machine learning and AI techniques of benefit to risk management. Then a review is provided, using current practice and empirical evidence, of the application of these techniques to the risk management fields of credit risk, market risk, operational risk, and compliance ('RegTech'). We conclude with some thoughts on current limitations

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... nd views on how the field is likely to develop in the short-to medium-term. Overall, we present an optimistic picture of the role of machine learning and AI in risk management, but note some practical limitations around suitable data management policies, transparency, and lack of necessary skillsets within firms.