ESG scores and climate policy uncertainty affect default risk in ESG and non-ESG firms. The study uses various metrics and machine learning models to analyze default risk over 20 years, offering policy insights for risk management in corporations and government.
This qualitative study involving eight bank executives explored self-perceived factors affecting operational resilience and strategies for improvement. Themes that emerged included financial stability, technology, risk management, remote capabilities, effective communication, and customer engagement. These strategies aimed to enhance operational resilience in the banking industry during crises.
The paper explores the use of machine learning, particularly deep learning techniques, in insurance pricing by modeling claim frequency and severity data. It compares the performance of various models, including generalized linear models and neural networks, on insurance datasets with diverse input features. The authors use autoencoders to process categorical variables and create surrogate models for neural networks to translate insights into practical tariff tables.
The rise of generative AI and chatbots has brought Artificial General Intelligence (AGI) closer. The EU AI Act mentions general-purpose AI systems. While technical and ethical challenges in AGI are debated, organizational risk management is crucial. This paper suggests using LLCs as business entities for AGI systems to mitigate investor risks and promote AGI businesses through vertical and horizontal liability shields.
Amid growing cyber threats, research on cyber insurance risk has been limited by data constraints. This paper addresses this gap by utilizing overlooked public data from U.S. state Attorneys General, offering insights into the actual scope of cyber insurance risk. The data, derived from mandatory data breach reporting, provides valuable information for pricing, reserving, underwriting, and experience monitoring in the cyber insurance industry.
Implementing Agenda 2030 and its global Sustainable Development Goals (SDGs) requires a concerted effort from institutions and the private sector. Sustainable Finance plays a crucial role in achieving this. International directives like Sustainability Reporting are shaping the landscape, emphasizing ESG criteria. This paper compares various sustainability frameworks and highlights the importance of ESG criteria for sustainability analyses and portfolio selection. It also suggests an integrated ERM framework to align sustainability with financial decisions, enhancing coherence with SDGs and facilitating cross-framework integration.
“This study presents a structured workflow applying text analysis to operational risk event descriptions. It identifies managerial clusters causing risks, enhancing traditional quantitative methods, and improving risk mitigation based on historical loss events.”
“The study demonstrates the capability of certain public sector banks to bear operational risk on a particular level of regulatory capital. The ability of a bank to be successful under unfavorable conditions is related to its operational risk, regulatory capital and management processes.”
The increasing complexity of data protection laws, rising compliance costs, and evolving cyber threats make data security a vital business concern.
This paper finds that 38.9% of tasks in jobs involve large language models, with 80% of workers spending 20% of their time on such tasks.Its mapping of risk exposure shows that LLMs directly expose 12.4% of tasks to privacy risks, 13.7% to cybersecurity risks, 13.6% to breach in professional standards risks, 14.1% to unethical or harmful bias risks, 10.6% to misinformation and manipulation risks, 26.4% to safety and physical harm risks, 26% to liability and accountability risks and 9.8% to intellectual property risks.