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.
While previous research has focused on #cyberrisk #riskmitigation measures, this study describes the emergence of various real-world cyber #risktransfer products in the last decade, including #warranties, #cloudcomputing partnerships, #parametricinsurance, #reinsurance, and #cyber #catbonds.
#esgratings ratings have informational content in #europe, but results are mixed in other regions. Information from multiple #esg rating providers should be cross-checked before being integrated into investment processes
This paper examines the use of #machinelearning methods in the context of #banks' #capitalrequirements, specifically the internal Ratings Based (#irb) approach. The authors discuss the advantages and risks of using machine learning in this domain, and provide recommendations related to #risk parameter estimations, #regulatory capital, the trade-off between performance and interpretability, international #banking competition, and #governance, #operationalrisk, and training.
The paper discusses the importance of #riskinformed #decisionmaking -and the use of #riskassessment to support decisions. It highlights the need for a more dynamic approach to #riskmanagement, which takes into account #uncertainty, changes in systems, phenomena, or values that could alter the underlying premises of the initial risk assessment.
This study examines the #riskallocation problem in distributed #insurance using #blockchaintechnology, considering different charging methods. Through #gametheory analysis, the research explores the #pareto optimal risk allocation method. The findings reveal that when charges occur during insurance signing, risk is proportionally distributed based on policyholders' #riskaversion coefficient. However, if the platform provider charges a fee proportional to the premium or actual risk, policyholders bear increased risk from others while their own risk is reduced, leading to decreased overall utility. These conclusions provide valuable insights for #blockchain insurance companies regarding user #riskmanagement and allocation.
This paper explores the evolving role of #compliance in #digitaltransformation (#dt), as corporations globally embrace technology to enhance competitiveness and address responsible, #ethical, and #sustainable practices. It analyzes the current and potential role of Compliance in DT, emphasizing the need to manage #governance, #risk, and compliance aspects and leverage #esg objectives. The authors conducted interviews with Compliance heads and facilitated a Salon attended by General Counsel and Compliance professionals. The purpose is to encourage international discussions on Compliance's role in digital transformation.
Chatreport is a tool that enhances #largelanguagemodels (#llms) with #expertknowledge to #benchmark #reports against the Task Force for Climate-Related Financial Disclosures (#tcfd) recommendations.
This paper explores the implementation of the #eu's #digitalservicesact (#dsa) with a specific focus on the #riskassessment and #riskmitigation regime outlined in Articles 34-35"
"We show that past #operationalrisk losses are informative of future losses, even after controlling for a wide range of financial characteristics. We propose that the information provided by past losses results from their capturing hard-to-quantify factors such as the quality of operational risk controls, the #riskculture and the #riskappetite of the #bank."