Better Prevention Than Cure: Cybersecurity Risk and Clawback Provision

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.

AI Regulations in the Context of Natural Language Processing Research

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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 ‘Two‑Step Test’ in Article 44 of the Gdpr and the Risk‑Based Approach Hypothesis

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“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.”

A Primer on the Economics of Conflicts of Interest in in Liability Insurance

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"There is a well-known conflict of interest between #liabilityinsurance #insurers and policyholders with respect to the decision to settle or litigate a #claim. This short note provides a simple graphical explanation for the problem and grounds it in the way the structure of the parties’ payouts drives their attitudes towards #risk. An optional appendix links the insights to the elementary mechanics of financial options.

The influence of ESG Ratings on the Credit Spread of Corporate Bonds

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#esg practices enhance #riskmanagement, performance, stakeholder interest, and capital access. Strong ESG ratings reduce credit spread, benefiting firms' financials. ESG disclosure aligns with principal-agent theory, lowering debt costs. Even modest ESG improvement cuts credit spread by 0.0035%, aiding companies' interest expenses. Transparent ESG commitment yields #european market rewards, aiding corporate bonds. Study aids policymakers, credit agencies, investors, and issuers in understanding ESG's bond impact.

A Parametric Insurance Policy for Beekeepers and Honey Production

This study addresses #climate-induced decline in #honey production, a significant #risk for #beekeepers. A #parametricinsurance policy is discussed, using #weatherdata to trigger payouts for losses due to adverse conditions. The approach is evaluated using random forests, comparing beekeepers' losses to #insurance benefits under various weather #scenarios, alongside traditional methods. An #italian case example demonstrates pricing for different regions.