These papers examine the role of #collectivebargaining and #governmentpolicy in shaping strategies to deploy new #digital and #ai-based technologies at work. The authors argue that efforts to better #regulate the use of AI and #algorithms at work are likely to be most effective when underpinned by social dialogue and collective #labourrights. The articles suggest specific lessons for #unions and policymakers seeking to develop broader strategies to engage with AI and #digitalisation at work.
"In this article we analyze a sample of international #insurers between 2013 and 2022, and show that the purchase of #reinsurance is negatively related to their #sustainability, as measured by #esg scores. Furthermore, we illustrate that insurers' losses decrease with higher levels of reinsurance and sustainability. However, while reinsurance brings down insurers' profitability, sound ESG scores are related to lower expenses and increasing profitability. Our interpretation is that strong ESG profiles may serve as a cheaper alternative to reinsurance for #riskmitigation."
This paper discusses the efficiency, effectiveness, and costs of #denmark's #antimoneylaundering (#aml) #compliance standards. Although the country has caught up with international standards, the current global AML compliance system is ineffective in deterring #moneylaundering by professional actors. The system imposes significant costs on #banks and society, while spending too much time on minor infractions. To improve the system, the author argues for a #risk-based approach that automates large portions of the compliance process and allows compliance staff to focus on investigations.
"The convex combination of the distortion #risk #measurement is constructed from the perspectives of #insurer and #reinsurer."
"The research findings revealed that still people do not pay due importance to the #lifeinsurance policy, they prefer other #financialialinstruments, such as #bank deposits, #mutualfunds, the #stockmarket, and some others... The buyers treated life #insurance as an #investment and #taxsavings instrument instead of a #risk coverage instrument."
#riskmanagement#geopoliticalrisk"The frequency of economic and #financialcrises is not increasing, but #politicalcrises can make #economiccrises more likely. The paper suggests that feedback between non-economic and economic crises can be important, but there is no comparable evidence for #climaterisk."
We offer a #datadriven theory of #belief formation that explains sudden surges in economic #uncertainty and their consequences. It argues that people, like #bayesian econometricians, estimate a distribution of macroeconomic outcomes but do not know the true distribution. The paper shows how real-time estimation of distributions with non-normal tails can result in large fluctuations in uncertainty, particularly related to tail events or "black swans." Using real-time GDP data, the authors find that revisions in estimated #blackswan #risk explain most of the fluctuations in uncertainty. These findings highlight the importance of #accounting for the effects of uncertainty and non-normality in economic decision-making and #policymaking.
"From a #riskmanagement perspective, it is challenging to #model physical and #transitionrisks given the #uncertainty around #climaterisk drivers, such as changes in #governmentpolicy aimed at reducing #greenhousegasemissions, the pace of technological change, and uncertainty around the transmission channels. A dearth of in-house modeling tools and reliance on #thirdparty vendors also hamper #banks’ ability to properly understand and manage #risks. The most recent #boe climate biennial exploratory scenario (#cbes) noted that “banks varied in their ability to scrutinize and understand the strengths and weakness of third-party models, and adapt them appropriately to the CBES.” As a result, projected #losses for banks varied widely, suggesting a high degree of uncertainty about the magnitude of climate risks as well as a limited ability to accurately reflect such risks in business decisions."
This article discusses the proposed #eu #cyberresilienceact (#cra) as a response to the growing #cybersecurityrisks associated with the fourth industrial revolution and the Internet of Things (#iot). It provides an overview of the CRA's provisions, including its #risk-based approach, #regulatoryrequirements, and scope of application, and critically evaluates them.
The study emphasizes the need for a better understanding of #ai to avoid policies that may hinder its benefits. It argues for a cross-disciplinary approach to AI #governance and clarifying its core concepts to build trust. The paper addresses two key questions: 1) What is the best way to safely introduce AI to maximize well-being and #sustainability in light of its potential #risks? and 2) What specific policy steps should be taken to implement it?