A Bayesian Network Framework for AI-Driven Risk Mitigation

This chapter examines the critical challenge of uncertainty in risk management, a persistent issue for organizations operating in dynamic and complex environments. It explores the strategic integration of Artificial Intelligence (AI) with risk management processes, focusing on Bayesian Networks (BNs) as a robust analytical framework. BNs enable probabilistic modeling of risk factor dependencies, providing a systematic approach to anticipate, assess, and mitigate threats before they escalate. By combining AI's predictive capabilities with BNs' structured reasoning, organizations can enhance decision-making resilience and agility. The chapter establishes a triangular relationship between uncertainty, AI-driven solutions, and BN models, demonstrating their collective contribution to robust risk mitigation.