Baku: In an effort to revolutionize credit risk assessment, Nigar Karimova, a prominent figure in financial risk management, has been instrumental in pioneering the integration of artificial intelligence (AI) into risk analysis. Her work aims to enhance the accuracy of identifying potential defaulters for financial institutions while promoting fairer access to credit for small and medium enterprises (SMEs), a crucial factor for economic growth.
According to Azeri-Press News Agency, Karimova’s initiative goes beyond conventional methods by employing an AI-based random forest model to improve credit risk assessment. This model has shown significant advantages over traditional approaches, particularly in time management and the ability to capture complex relationships among variables. By utilizing AI, financial institutions can analyze vast amounts of data swiftly and accurately, reducing the manual and error-prone processes of traditional methods. This innovative approach also incorporates external macroeconom
ic factors, such as interest rate changes and currency fluctuations, which can significantly impact a firm’s performance.
Karimova’s work is set to present a proposal for a Debt Repayment Capacity Calculation for Wholesale Credit Risk to the Central Bank of Azerbaijan, a move signaling her commitment to advancing financial risk management in the country. Her research findings underscore the potential for AI models to provide a more dynamic and comprehensive analysis of creditworthiness, leading to a more equitable allocation of funds to deserving SMEs. However, challenges remain, such as the need for extensive datasets to train AI models effectively and the difficulty in interpreting the decision-making processes of machine learning algorithms. These limitations necessitate careful consideration of ethical issues and transparency when applying AI in financial practices.
Karimova’s contributions have been recognized as pivotal not only in Azerbaijan but also for broader applications in emerging markets. Her
leadership in strategic investments, including a $3.5 million investment in NUCS AI, demonstrates her dedication to fostering innovation within the financial sector. As Azerbaijan’s top banks show interest in her insights, Karimova continues to be a valuable asset in the field, driving impactful, data-driven decisions that support sustainable growth.
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Putin Praises Progress in Azerbaijan-Armenia Border Negotiations
Kazan: Russian President Vladimir Putin expressed satisfaction over the initiation of demarcation and delimitation processes between Azerbaijan and Armenia, signaling a potential path toward a peace agreement. His comments were made during the first plenary session of the 16th BRICS Summit, held in the Outreach/BRICS+ format in Kazan.
According to Azeri-Press News Agency, Putin emphasized the significance of the border negotiations, describing them as a positive step toward resolving longstanding tensions between the two countries. He highlighted that the dialogue between Azerbaijani and Armenian leaders during the summit contributed positively to the overall event.