On June 23rd, 2024, the 2024 Dishui Lake Emerging Finance Conference - China Financial Risk Management Annual Convention was successfully held at the Dishui Lake Financial Bay in Shanghai Lin-gang Special Area. Themed around “Risk Management in the Era of Artificial Intelligence” (“人工智能时代的风险管理”), the event was hosted by Shanghai Lin-gang Special Area Economic Development Co., Ltd., and Peking University Shanghai Lin-gang International Science and Technology Innovation Center (PKU-IICSH), organized by Golden Education, and co-organized by the Union of Finance Alumni of Peking University (UFAPKU). Global Association of Risk Professionals (GARP) and PKU Financial Review offered special academic support for the event.
The convention featured keynote speeches and round-table discussions led by experts and scholars from finance, management, and artificial intelligence, attracting nearly 200 offline attendees working in related industries and 25,000 online participants. Xu Siyuan, Head of the Teaching and Research Department at Golden Education Finance Division, hosted the convention.
Mr. Sun Canglong, Secretary of the Party Committee and Chairman of the Shanghai Lin-gang Special Area Economic Development Co., Ltd., introduced the development and financial innovation initiatives of Lin-gang Special Area, emphasizing the critical role of risk management in financial development.
Mr. Rich Apostolik, President and CEO of GARP, shared the global trends and challenges in financial risk management and expressed his anticipation for financial risk management developments in China in his address.
Dr. Jiang Ruiquan, President of the Institute of Financial Technology in Shanghai Kingstar Software Technology Co., Ltd., gave an overview of artificial intelligence and Large Language Model (LLM) technologies, in which he introduced the application of LLM in financial risk domains to process documents, extract information, review texts, answer questions, etc.
Mike van de Graaf, General Manager Risk and Performance Measurement at Treasury Corporation of Victoria, offered insights on employing artificial intelligence in the finance industry via a video speech, discussing technology integration, transformation of risk management, and AI application.
Mr. Huang Jian, Co-President and CFO of Wiseco Technology Co., Ltd, expounded on AI's role in credit risk management in his speech, exploring issues including algorithms and data, data and applications in the era of big data, the development of algorithms and models, and AI application throughout credit risk processes.
Prof. Huang Mian, Doctoral Supervisor of the School of Statistics & Management, Shanghai University of Finance and Economics, addressed AI applications in asset management and trading, including factor mining, short-term trend forecasting, and information retrieval and extraction. He also discussed the challenges and critical factors in AI’s financial applications.
Prof. Xu Hua, Researcher at the Institute for Artificial Intelligence, Peking University, and Executive Director of the LLM Safety Alignment Center at PKU-IICSH, discussed methods for LLM to address the issue of Value at Risk and its broader applications in finance, including automated risk control and approval processes. He also explored the problems and solutions of hallucination in Large Language Models.
Mr. Wu Yong, Deputy Director of the Industry Promotion Center of Shanghai Lin-gang Special Area Economic Development Co., Ltd., outlined the advantages and development plans of Dishui Lake Financial Bay, which covered various aspects, including its transportation hubs, national strategies, policy frameworks, cutting-edge technology industries, financial ecosystems, international trade systems, shipping hubs, business environments, industry events, talent support, and living conditions.
During the round-table discussion held in the afternoon, attendees delved into AI applications in financial risk management, data management, ethical standards, the readiness of professionals and students, and AI's impacts on finance and daily life. They identified vast prospects for employing AI in financial risk management alongside challenges such as data quality, model reliability, and ethical standards. Better applications of AI in finance necessitates strengthened data governance, increased model transparency, the establishment of sound ethical frameworks, and enhanced professional training and education.
After the round-table discussion, the conference issued FRM certification to professionals who had passed the FRM exam with a full-time job. The FRM Certification is the authoritative certificate in financial risk management and is approved by the Ministry of Human Resources and Social Security of the PRC as a National Vocational Qualification Certificate. Rich Apostolik, President and CEO of GARP, presented the certificates, acknowledging recipients’ excellence in the field.
The successful hosting of this convention provided a platform for experts, scholars, and professionals in finance to collaborate and exchange ideas, advancing the application and development of artificial intelligence technology in financial risk management and elevating risk management standards in the financial industry. Furthermore, the event showcased Lin-gang Special Area's achievements and advantages in financial technology innovation, reinforcing its position as an emerging hub for finance.
