"This paper examines a #stochastic one-period #insurancemarket with incomplete information. The aggregate amount of #claims follows a compound #poisson distribution. #insurers are assumed to be exponential utility maximizers, with their degree of #riskaversion forming their private information. A premium strategy is defined as a map between risk types and premium rates. The optimal premium strategies are denoted by the pure-strategy #bayesian #nash equilibrium, whose existence and uniqueness are demonstrated under specific conditions for the demand function..."
We assess the impact of #brandreputation on asset prices, focusing on Donald Trump's presence in Manhattan real estate. Analyzing from mid-2015 to 2022, we find a 19% markdown on condos in Trump-branded buildings due to controversies around his candidacy. The drop was swift and substantial, indicating the relevance of #reputationalrisk in pricing. Using #twitter data, a 1-standard-deviation increase in our reputation indicator forecasts a 6% discount. Tax data shows no benefits, and property values fell by $1.1 billion, underlining the importance of considering reputational risk in #riskmanagement.
The current global #dataprivacy situation resembles the accountability crisis during the early 2000s US accounting scandals. Lack of oversight, #transparency, and #regulation has led to confusion and distrust. By emulating successful models like the Sarbanes-Oxley Act, companies can regain consumer trust by treating privacy policies like #financialstatements, standardized and audited. The proposal includes #privacy #controls similar to financial internal controls and a Privacy Cube framework for #riskmanagement, ultimately aiming to rebuild #consumertrust in #data handling.
Companies use #ai tools for #hr decisions, but they face a balance between benefits and #risks. With limited federal #regulation and complex state laws, employers seek guidance. The #model#riskmanagement#mrm framework, adapted from #finance, aids in managing #airisks for #employment choices. Proportionality lets employers adjust validation to risks and tech changes. Objective analysis and a competent MRM team ensure AI tools align with design and legal requirements, fostering trust and #compliance.
The paper discusses #modeling #longevity #risk, focusing on assumptions in #demographic #forecasting to project past data into the future. #stochastic forecasts are crucial to quantify #uncertainty in cohort survival predictions, including process variance and parameter/model errors.
The study analyzes how #cybersecurityrisk impacts #clawback policy adoption in #us listed firms from 2008-2018. It finds that rising cybersecurity risk increases clawback adoption, influenced by business goals, management preferences, and market efficiency. Stronger tech commitment and non-co-opted boards reduce this effect, showing firms consider clawbacks as preventive against #misconduct, incorporating cybersecurity risk.
On July 26, 2023, the #sec adopted final rules requiring disclosure of material #cybersecurity incidents on Form 8-K and periodic disclosure of a registrant’s cybersecurity #riskmanagement, strategy, and #governance in #annualreports.
Corporate #riskmanagement encompasses both financial hedging and #operationalrisk #riskmitigation. This study investigates how #laborlaw #breaches during surprise inspections impact supplier choices in major #us firms.
Recent #ai developments, particularly in Natural Language Processing (#nlp) like #gpt3, are widely used. Ensuring safety and trust with increasing NLP use requires robust guidelines. Global AI #regulations are evolving through initiatives like the #euaiact, #unesco recommendations, #us AI Bill of Rights, and others. The EU AI Act's comprehensive regulation sets a potential global benchmark. NLP models are subject to existing rules, such as #gdpr. This paper explores AI regulations, GDPR's application to AI, the EU AI Act's #riskbasedapproach, and NLP's role within these frameworks.
“The origins of the discussion concerning the role of #risk in #datatransfers are difficult to trace. Despite this, #schrems II, a recent decision of the European Court of Justice (#cjeu), has given the topic new traction. This paper explores the risk-based approach (#rba) hypothesis for data transfers from a different perspective: the consequences of applying the 'two-step test' stated in Article 44 of #gdpr. The main goal is to present the challenges of applying this test and the various questions it raises.”