Dulam, Murali Shankar ; Carimireddy, Shiva & Pasupuleti, Naga Surya: Risk-Aware Financial RAG with Distributional Retrieval Policies

Financial Retrieval and Risk Governance Forum. 2026Financial retrieval-augmented generation (RAG) systems are increasingly used to summarize market events, explain portfolio exposures, answer policy questions, and support regulated advisory workflows. Standard retrieval pipelines optimize semantic relevance and latency, but financial decisions are shaped by asymmetric losses, tail events, privacy constraints, stale evidence, and persuasive narrative drift. This paper proposes Risk-Aware Financ