Meeting Compliance and Regulatory Expectations Compliance remains a top priority for financial institutions, and regulators are increasingly focused on credit risk oversight. Generative AI in credit risk management helps institutions stay compliant by maintaining detailed audit trails, ensuring transparency and aligning with regulatory standards. Data security is also a major concern. Addressing bankers’ worries about utilizing AI-powered tools, Kirby reassures, “Yes, it’s secure. Abrigo knows better than to mess around with data privacy in banking. These tools are built with data encryption, robust access controls and compliance baked in from the start.” AI doesn’t just help loan review teams work faster, it helps them provide regulators with clear, consistent documentation, reducing the risk of compliance issues and improving overall governance. Better Risk Insights, Better Decisions Ultimately, the goal of generative AI in credit risk management is to help financial institutions make better lending decisions. By improving efficiency, accuracy and consistency, AI-driven solutions like Loan Review Assistant not only reduce workload but also enhance risk assessment capabilities. Just as technology has transformed banking over the decades, AI is now changing the way financial institutions manage credit risk. Kirby advises loan reviewers to embrace the process. “When something new comes out, there is always the concern of its sustainability. Twenty-five years ago, there was a fear that all automated systems were flashy, overhyped tech gimmicks, but today they are the differentiators between adaptable community banks and their competition,” he said. “This is a practical, well-designed solution that makes life easier for those of us in the trenches of risk management. It helps us work faster, more accurately and without the headache of manual documentation. It’s the kind of tool that pays for itself in saved time and improved portfolio insights.” Kent Kirby is a retired banker with over 39 years of experience in all aspects of commercial banking: lending, loan review, back-room operations, credit administration, portfolio management, and analytics and credit policy. As senior consultant in the Portfolio Risk practice, Kirby assists institutions in the review and enhancement of commercial. NEBRASKA INDEPENDENT BANKER 15
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