The Supply of Cyber Risk Insurance

This paper analyzes the constraints on the #insuranceindustry in providing larger capacity for #cyberrisk #insurance. The authors argue that cyber risk is unique in that it is both information-intensive to underwrite and heavy-tailed, leading to a tension between the need to raise large amounts of external capital to finance heavy-tailed risks and the high compensation demanded by capital providers due to information frictions.

Time Dynamics of Cyber Risk

This paper analyzes the characteristics of #cyber #loss #events and how they evolve over time. The authors use three large databases to address the problem of #report #delay and analyze the #frequency and #severity of different categories of #cyberevents . They find that the frequency of malicious cyber events has grown exponentially in the past two decades, but there is no significant change in loss severity.

Multi‑Population Heat Wave Mortality Models for Longevity Risk Pricing and Hedging

Proposed #actuarial #models address concerns over #longevity #risk by incorporating stalling #mortality improvements and #heatwave effects. They offer a parsimonious approach to capturing recent mortality trends and enable more accurate forecasts. Findings indicate a higher #insurance #riskpremium tolerance in longevity swaps.

The Informational Impact of Prudential Regulations

"#banks take costly actions (such as higher #capitalization, #liquidity holding, and advanced #riskmanagement) to avoid financial distress and #bankruns ... We show that #prudential #regulations have an informational impact: sufficiently tight regulations can eliminate inefficient separating equilibria in banks’ signaling game, thereby changing the information available to creditors and their incentives to run."

Using Process Mining as an Assurance‑Tool in the Three‑Lines‑Of‑Defense Model

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"#processmining has become a standard in many companies as part of #processcontrol in various areas. Previous papers for specific areas have discussed its use to ensure good #governance. This paper proposes generic use cases of process mining in the context of #assurance activities in the three-lines-of-defense model and validates with real corporate data from a multinational company."

Building a Culture of Safety for AI: Perspectives and Challenges

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The paper explores the challenges of building a #safetyculture for #ai, including the lack of consensus on #risk prioritization, a lack of standardized #safety practices, and the difficulty of #culturalchange. The authors suggest a comprehensive strategy that includes identifying and addressing #risks, using #redteams, and prioritizing safety over profitability.