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VOL. 7, ISSUE 1 (2021)
Corporate governance practices and accountability mechanisms in AI-driven credit risk assessment: Evidence from financial institutions
Authors
Dr. A R Annadurai, Dr. R Ilavenil
Abstract

The increasing adoption of artificial intelligence (AI) in credit risk assessment has significantly transformed lending operations within financial institutions. AI-driven credit scoring systems enable faster processing of loan applications, improved prediction of creditworthiness, and enhanced operational efficiency. Despite these benefits, the increasing dependence on AI technologies has generated concerns related to transparency, fairness, accountability, data privacy, and regulatory compliance. In this context, effective corporate governance plays a crucial role in ensuring the responsible and ethical use of AI in financial decision-making.

This study examines the corporate governance practices and accountability mechanisms associated with AI-based credit risk assessment in financial institutions. It explores the influence of governance structures, board oversight, risk management policies, internal control systems, and ethical standards on the design, implementation, and monitoring of AI models used in lending decisions. The research also investigates key challenges such as algorithmic bias, lack of explainability, data protection issues, and accountability for automated decisions. By analysing evidence from financial institutions, the study evaluates the effectiveness of existing governance frameworks in managing AI-related risks and fostering stakeholder confidence. The findings aim to support the development of robust governance strategies that balance technological innovation, ethical responsibility, regulatory compliance, and sustainable organizational performance.
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Pages:78-81
How to cite this article:
Dr. A R Annadurai, Dr. R Ilavenil "Corporate governance practices and accountability mechanisms in AI-driven credit risk assessment: Evidence from financial institutions". International Journal of Commerce and Management Research, Vol 7, Issue 1, 2021, Pages 78-81
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Corporate governance practices and accountability mechanisms in AI-driven credit risk assessment: Evidence from financial institutions | International Journal of Commerce and Management Research