Authors : Rajashree Ambhore

Volume/Issue : Volume 10 - 2025, Issue 1 - January

Google Scholar : https://tinyurl.com/ym6y6em4

Scribd : https://tinyurl.com/3xwe6ny9

DOI : https://doi.org/10.5281/zenodo.14810113

Abstract : The adoption of artificial intelligence (AI) within risk management has disrupted how decisions are made, offering enhanced efficiency gains, improved risk prediction, and automated processes. However, this progress presents significant ethical challenges that risk undermining trust, fairness, and accountability in vital systems. This study examines the ethical risks associated with integrating AI into risk management, focusing on bias, transparency, privacy concerns, and the diminishing role of human oversight. By analyzing real-world examples and current practices across industries, this research aims to uncovers gaps in existing governance frameworks and highlights the need for clear ethical guidelines to address this risk effectively. This study will explore the critical need to achieve a balance between fostering innovation and maintaining ethical standards. Additionally, this study provides actionable strategies for organizations to responsibly leverage AI in risk management. By contributing to the ongoing conversation around AI ethics, this research proposes a practical framework for embedding ethical considerations into AI-powered risk management systems, ensuring the advantages of AI are realized while upholding essential values.

Keywords : Artificial Intelligence, Risk Management, Ethics, Bias, Transparency, Privacy, Human Oversight, Governance, Innovation.

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