Institute of Finance and Artificial Intelligence

Originally founded in 1999, it became the Institute of Finance and Artificial Intelligence in 2021, focusing on the development and application of modern artificial intelligence approaches and mathematically supported methods for more accurate analysis, reliable forecasting, and strategic decision-making in finance and other fields such as medicine, industry, and macroeconomics. We conduct research, consulting, and educational projects that utilize advanced technological tools, supercomputers, and our proprietary algorithms, enabling us to process large amounts of data and solve complex analytical challenges. Our solutions are always tailored to the specific needs of our clients, drawing on interdisciplinary knowledge, international cooperation, and extensive experience. Our partners include global institutions such as the World Health Organization (WHO), as well as numerous clients in Slovenia.

We specialize in risk management consulting, utilizing advanced quantitative and AI methods to help companies identify, measure, and effectively manage key risks. We regularly publish the Risk Monitor monograph, which provides a comprehensive overview of current risks in non-financial companies and offers analytical insights and recommendations for better managing uncertainty. Additionally, we publish the monthly IFAI Global Risk Radar, which identifies key risks and provides practical solutions and guidelines for their effective management.

Additionally, we undertake numerous bilateral and market-oriented projects. Among these, our collaboration with Indiana University Kelley School of Business stands out, where we jointly research risk management in non-financial companies. In the market area, we can highlight the project of analysing current business risks for strategic decision-making and the study of cost models and pricing policies in public utilities.

We also place special emphasis on connecting experts and students. That is why we organize various professional events, such as Crypto Connect @ EPF. As part of this event, we organize professional lectures, round tables, and hackathons where students interested in finance, mathematics, programming, and advanced model development can gain practical experience and participate in solving real-world challenges. On an annual basis, as part of our cooperation with the University of Udine, we offer students the opportunity to participate in a blended intensive program (BIP), where they learn about and tackle current topics inthe field of finance and data analytics.

The institute is also a breeding ground for new top experts. As part of the Young Researchers Program, we regularly train doctoral students in the research areas covered by the institute. We participated in the creation of the new master's program in Data Science and Business and in the establishment of the Financial Laboratory, which has obtained international accreditation from IIPER RISK LAB.

Our members participate in numerous bodies of domestic and international institutions, companies, and professional associations.

Research areas:

corporate finance,
banking,
insurance,
public finance,
financial markets,
health economics,
quantitative methods in finance (optimization algorithms, advanced econometric and statistical analyses),
risk management (VaR models and advanced risk measurement methods, stress testing, Monte Carlo simulations, sensitivity analysis, and scenario analysis),
behavioural finance and experimental economics,
data science,
artificial intelligence,
machine learning,
neural networks (deep learning, transformers, and large language models),
supercomputing.

Due to the large datasets and computationally intensive calculations, the institute utilizes supercomputing infrastructure. This is particularly important in the field of company valuation, where we conduct extensive simulations, as well as in the development of advanced artificial intelligence models. In Slovenia, several supercomputing systems are available, but within the framework of research programs, we can primarily access three: HPC Vega, HPC Maister, and Cluster Arnes. Of these, we currently use Cluster Arnes, which enables reliable and efficient execution of complex calculations.

IFAI Global Risk Radar – Latest Issues

License:

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Corporate Risk Management Composite Index

The Corporate Risk Management Composite Index (CRMI) is an online tool designed to support the self-assessment of corporate risk management maturity. It is based on empirical econometric modelling and a standardized methodology developed within the Slovenian Corporate Risk Monitor research program.

The tool enables:

the calculation of the Corporate Risk Management Composite Index (CRMI) on a 0-1 scale,
the assessment of the contribution of risk management to business performance through a colour-coded interpretation scale,
the application of thresholds for key financial indicators (ROE, ROA, NCFTA, Kralicek DF),
the presentation of realistic and optimistic scenarios that incorporate uncertainty.

Why is this useful for companies?

It supports board-level discussions on risk management maturity and related decision-making.
It enables companies to assess their position relative to reference practice (below, around, or above average).
It bridges empirical academic evidence with practical decision support, reducing the gap between research and practice.
It allows calibration to European reference levels, providing a more realistic context and interpretation of results.

CRMI is not a forecasting model, a company valuation instrument, or a compliance checklist.

The tool is freely accessible and runs entirely within the user’s browser, without logins, data storage, or server-side processing.

Access the tool here:

CRMI

Industry Beta Monitor: Historical vs Forecast (US & Europe)

Industry Beta Monitor is a new interactive research tool developed at the Institute of Finance and Artificial Intelligence (IFAI) that provides insights into the dynamics of sector-level systematic risk in the US and European markets.

By combining historically estimated industry betas with AI-supported, one-year-ahead forecasts, the tool enables users to explore how systematic risk evolves over time and how forward-looking risk signals may diverge from backward-looking estimates.

Designed as a decision-support instrument for valuation, risk management, and strategic financial analysis, the Industry Beta Monitor translates advanced academic research into a transparent, browser-based application. The tool allows practitioners, boards, and researchers to assess changes in industry risk profiles, support cost-of-capital estimation, and identify emerging risk patterns at the sector level.

Access the Industry Beta Monitor here:

Industry Beta Monitor

Access the Industry Beta Monitor (yearly frequency!) here:

Industry Beta Monitor (yearly frequency)

IFAI Beta Forecaster

Interactive firm-level beta prediction tool for financial decision-making

The IFAI Beta Forecaster is an interactive analytical tool developed by the Institute of Finance and Artificial Intelligence (IFAI) that enables users to estimate firm-specific equity betas based on a research-validated model. It supports scenario analysis and risk assessment using industry-specific inputs and macroeconomic indicators, tailored to historical market data and forward-looking forecasts. This tool is designed for financial analysts, corporate managers, and investors seeking model-based insights into systematic risk for valuation, cost of capital, and strategic planning.

Access the IFAI Beta Forcaster here:

IFAI Beta Forecaster