News Risk Alerting System (NRAS): A Data-Driven LLM Approach to Proactive Credit Risk Monitoring

Adil Nygaard, Ashish Upadhyay, Lauren Hinkle, Xenia Skotti, Joe Halliwell, Ian C Brown, Glen Noronha


Abstract
Credit risk monitoring is an essential process for financial institutions to evaluate the creditworthiness of borrowing entities and minimize potential losses. Traditionally, this involves the periodic assessment of news regarding client companies to identify events which can impact their financial standing. This process can prove arduous and delay a timely response to credit impacting events. The News Risk Alerting System (NRAS) proactively identifies credit-relevant news related to clients and alerts the relevant Credit Officer (CO). This production system has been deployed for nearly three years and has alerted COs to over 2700 credit-relevant events with an estimated precision of 77%.
Anthology ID:
2024.emnlp-industry.32
Volume:
Proceedings of the 2024 Conference on Empirical Methods in Natural Language Processing: Industry Track
Month:
November
Year:
2024
Address:
Miami, Florida, US
Editors:
Franck Dernoncourt, Daniel Preoţiuc-Pietro, Anastasia Shimorina
Venue:
EMNLP
SIG:
Publisher:
Association for Computational Linguistics
Note:
Pages:
429–439
Language:
URL:
https://aclanthology.org/2024.emnlp-industry.32
DOI:
Bibkey:
Cite (ACL):
Adil Nygaard, Ashish Upadhyay, Lauren Hinkle, Xenia Skotti, Joe Halliwell, Ian C Brown, and Glen Noronha. 2024. News Risk Alerting System (NRAS): A Data-Driven LLM Approach to Proactive Credit Risk Monitoring. In Proceedings of the 2024 Conference on Empirical Methods in Natural Language Processing: Industry Track, pages 429–439, Miami, Florida, US. Association for Computational Linguistics.
Cite (Informal):
News Risk Alerting System (NRAS): A Data-Driven LLM Approach to Proactive Credit Risk Monitoring (Nygaard et al., EMNLP 2024)
Copy Citation:
PDF:
https://aclanthology.org/2024.emnlp-industry.32.pdf