Authors: Prithan Deka
Abstract: Financial uncertainty has become a constant in the global economy, rendering traditional, static ERP reporting insufficient for strategic steering. This article proposes an "Intelligent Framework" that integrates the transactional robustness of SAP S/4HANA with advanced Machine Learning (ML) models to manage and mitigate financial risks proactively. By leveraging SAP Business Technology Platform (BTP) for model deployment and SAP Analytics Cloud (SAC) for multi-scenario simulations, the framework allows for real-time stress testing and predictive cash flow management. We explore the application of Deep Learning (LSTM) for volatility forecasting and Gradient Boosting for credit risk assessment, emphasizing the importance of Explainable AI (XAI) for regulatory compliance. The study demonstrates that by moving from deterministic to stochastic modeling, organizations can significantly reduce liquidity buffers and improve the accuracy of rolling forecasts. We conclude by addressing the ethical implications of AI in finance and the emerging role of Generative AI in automating risk reporting. This framework provides a strategic roadmap for CFOs to transform their finance organizations into resilient, data-driven intelligence hubs.
DOI: http://doi.org/10.5281/zenodo.18229084
