1
Fundamentals of AI in Finance and Risk Management
Explain the fundamentals of Artificial Intelligence (AI) and its applications in finance and risk management.
Learning Outcomes
2
Applications Across Finance and Risk Management Domains
Identify AI use cases for fraud detection, algorithmic trading, credit scoring, portfolio management, and compliance to apply AI-driven techniques for strengthening fraud detection and improving credit risk assessment.
3
Evaluating AI Solutions
Evaluate data requirements, model performance, and explanations for financial AI systems.
4
Practical AI Implementation
Develop a roadmap for adopting AI in BFSI (Banking, Financial Services, Insurance) while balancing innovation and risk.
5
Ethics, Law & Security
Analyze AI-driven trading strategies and assess their ethical, legal, and regulatory implications.
6
Future Trends & Models
Anticipate future trends such as decentralized finance (DeFi), blockchain-AI convergence, and quantum computing.
Program structure
Lesson Plan
5 modules • 51hours total length
Module 1: Foundations of AI in Finance
Module 1: Foundations of AI in Finance
What you'll learn
- Define AI, ML, and DL in the BFSI and financial services context
- Trace the history and evolution of AI adoption in finance
- Differentiate structured vs. unstructured financial data and preprocessing needs
- Apply predictive analytics and explainable AI (XAI) in finance
- Evaluate AI infrastructure requirements and regulatory data constraints
- Analyze case insights from JPMorgan COiN and HDFC Eva chatbot
Skills you'll gain
AI FundamentalsFinancial DataPredictive AnalyticsExplainable AIBFSI InfrastructureRegulatory AwarenessCase Study Analysis
Module 2: AI for Fraud Detection
Module 2: AI for Fraud Detection
What you'll learn
- Identify major types of fraud in finance and analyze global/India trends
- Apply ML and deep learning for anomaly detection and fraud prevention
- Use graph analytics to detect fraud rings and collusion patterns
- Apply NLP for real-time fraud alerts and monitoring
- Explore federated learning for secure fraud detection across institutions
- Analyze fraud detection in AML, fintech, and cross-border finance cases
Skills you'll gain
Fraud AnalyticsAnomaly DetectionDeep LearningGraph AnalyticsNLP AlertsAML ComplianceFederated Learning
Module 3: AI in Credit Risk & Scoring
Module 3: AI in Credit Risk & Scoring
What you'll learn
- Compare traditional vs. AI-based credit scoring methods
- Engineer and apply data features for credit scoring models
- Design ML and DL models for credit risk and creditworthiness evaluation
- Apply fairness principles in AI-driven lending decisions
- Implement AI in retail, SME, and microfinance lending processes
- Build early warning systems and alternative scoring models for India’s context
Skills you'll gain
Credit ScoringRisk ModelingDeep LearningFair LendingSME LendingEarly Warning SystemsAlternative Scoring
Module 4: AI in Trading & Investment
Module 4: AI in Trading & Investment
What you'll learn
- Differentiate rules-based vs. AI-driven algorithmic trading approaches
- Apply ML and reinforcement learning in trading optimization strategies
- Use portfolio optimization and sentiment analysis to improve returns
- Evaluate risk-adjusted returns with AI-driven models
- Ensure compliance and ethical considerations in AI trading systems
- Explore robo-advisors, HFT, hedge funds, and ESG investing with AI
Skills you'll gain
Algorithmic TradingReinforcement LearningPortfolio OptimizationSentiment AnalysisRisk-Adjusted ReturnsRobo-AdvisorsESG AI Investing
Module 5: Governance, Compliance & Future Trends
Module 5: Governance, Compliance & Future Trends
What you'll learn
- Design AI governance frameworks and model risk management practices
- Apply AI audit, monitoring, and assurance mechanisms
- Interpret BFSI regulations: DPDP, GDPR, Basel III, RBI, SEBI guidelines
- Apply transparency, accountability, and ethical frameworks in financial AI
- Explore future trends: DeFi, quantum computing, InsurTech, next-gen AI
- Analyze Indian fintech case studies in governance and risk innovation
Skills you'll gain
AI GovernanceRisk ManagementCompliance FrameworksEthical AIRegulatory AwarenessDeFi & Quantum AIFinTech Case Analysis
