datadabllp

assess the risk of a complex financial product

Aug 26th, 2024
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Python 1.31 KB | None | 0 0
  1. def assess_financial_product_risk(llm_agent, product_details, market_conditions, regulatory_framework):
  2.     prompt = f"""
  3.    Conduct a comprehensive risk assessment for the following financial product:
  4.    {product_details}
  5.  
  6.    Consider:
  7.    1. Market volatility: {market_conditions['volatility']}
  8.    2. Interest rate trends: {market_conditions['interest_rates']}
  9.    3. Regulatory compliance with {regulatory_framework}
  10.    4. Historical performance of similar products
  11.    5. Potential impact on bank's risk profile
  12.  
  13.    Provide a detailed risk assessment report with a risk rating (Low, Medium, High) and specific mitigation strategies.
  14.    """
  15.    
  16.     assessment = llm_agent.generate(prompt)
  17.     risk_rating = llm_agent.extract_risk_rating(assessment)
  18.     mitigation_strategies = llm_agent.extract_mitigation_strategies(assessment)
  19.    
  20.     return {
  21.         "detailed_assessment": assessment,
  22.         "risk_rating": risk_rating,
  23.         "mitigation_strategies": mitigation_strategies
  24.     }
  25.  
  26. # Usage
  27. result = assess_financial_product_risk(compliance_llm_agent,
  28.                                        "New structured derivative product XYZ",
  29.                                        {"volatility": "High", "interest_rates": "Rising"},
  30.                                        "Dodd-Frank Act and MiFID II")
  31.  
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