Which of the following systems is used for risk assessment in banking?

The use of an expert system in banking for risk assessment is significant due to its ability to simulate human decision-making and apply complex rules to evaluate lending risks, creditworthiness, or market exposure. An expert system utilizes a knowledge base that can include information from industry standards, past experiences, and statistical data which are essential for assessing various risks.

In the context of banking, these systems can analyze large volumes of data much faster than a human can, allowing for the identification of patterns and potential risks that might not be immediately obvious. By leveraging this advanced data processing, banks can make informed decisions when approving loans, assessing investment portfolios, or managing overall risk exposure.

The other systems mentioned do not serve the same specific purpose. A transaction processing system primarily handles daily transactions without assessing risks. A management information system focuses on consolidating and reporting information for management decision-making but does not provide specialized risk assessment. Knowledge work systems support the creation of knowledge and information but do not specifically focus on risk evaluation as an expert system would. This specialized capability of expert systems makes them particularly suited for risk assessment in the banking sector.