Identifying Financial Risk Information Using RAG with a Contrastive Insight

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1. Verfasser: Elahi, Ali
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Veröffentlicht: 2025
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author Elahi, Ali
author_facet Elahi, Ali
contents In specialized domains, humans often compare new problems against similar examples, highlight nuances, and draw conclusions instead of analyzing information in isolation. When applying reasoning in specialized contexts with LLMs on top of a RAG, the pipeline can capture contextually relevant information, but it is not designed to retrieve comparable cases or related problems. While RAG is effective at extracting factual information, its outputs in specialized reasoning tasks often remain generic, reflecting broad facts rather than context-specific insights. In finance, it results in generic risks that are true for the majority of companies. To address this limitation, we propose a peer-aware comparative inference layer on top of RAG. Our contrastive approach outperforms baseline RAG in text generation metrics such as ROUGE and BERTScore in comparison with human-generated equity research and risk.
format Preprint
id arxiv_https___arxiv_org_abs_2510_03521
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Identifying Financial Risk Information Using RAG with a Contrastive Insight
Elahi, Ali
Computation and Language
Artificial Intelligence
In specialized domains, humans often compare new problems against similar examples, highlight nuances, and draw conclusions instead of analyzing information in isolation. When applying reasoning in specialized contexts with LLMs on top of a RAG, the pipeline can capture contextually relevant information, but it is not designed to retrieve comparable cases or related problems. While RAG is effective at extracting factual information, its outputs in specialized reasoning tasks often remain generic, reflecting broad facts rather than context-specific insights. In finance, it results in generic risks that are true for the majority of companies. To address this limitation, we propose a peer-aware comparative inference layer on top of RAG. Our contrastive approach outperforms baseline RAG in text generation metrics such as ROUGE and BERTScore in comparison with human-generated equity research and risk.
title Identifying Financial Risk Information Using RAG with a Contrastive Insight
topic Computation and Language
Artificial Intelligence
url https://arxiv.org/abs/2510.03521