"The #eu proposal for the #artificialintelligenceact (#aia) defines four #risk categories: unacceptable, high, limited, and minimal. However, as these categories statically depend on broad fields of application of #ai systems (#ais), the risk magnitude may be wrongly estimated, and the AIA may not be enforced effectively. Our suggestion is to apply the four categories to the risk #scenarios of each AIs, rather than solely to its field of application."
This paper claims to contribute to the understanding of #peertopeer, #decentralized distributed #insurance as a viable alternative to traditional insurance models, offering potential solutions to address market consolidation and enhance #financialinclusion through #risksharing. Further exploration and empirical studies are necessary to validate the viability and long-term implications of this emerging paradigm in the #insuranceindustry.
"Among investor categories, #insurers and households appear to be the most exposed to #climaterisks through the intermediary of #investmentfunds. However, insurers seem to be aware of this #risk and tend to invest in funds with low exposure to brown assets."
"In the rapidly evolving world of #ai technology, creating a robust #regulatoryframework that balances the benefits of AI #chatbots [like #chatgpt] with the prevention of their misuse is crucial."
This paper explores three notable #quantumcomputing applications in the realm of #centralbanking, including assessing #financialrisk, #creditscoring, and #transactionsettlement. Although these applications are currently in the proof-of-concept stage, they highlight the emergence of new software paradigms and potential breakthroughs. It also emphasizes the importance of carefully considering the trade-off between adopting innovative technology before it becomes mainstream and the #risk of being outpaced by more agile competitors.
"We use the recently failed #svb as a case study. Our [#machinelearning #textanalysis] findings indicate a weaker emphasis on #riskgovernance by SVB and an environment, particularly after 2011, where the #ceo became more dominant in influencing SVB’s #riskculture. We also show that despite recognition of the portfolio problems, SVB’s CEO’s tone indicated that #regulatorycompliance and #riskstrategy of the #bank would #mitigate these #risks. We observe an alignment between the #riskculture of SVB and other banks with the highest uninsured deposits as well as with two #us #gsibs."
This paper explores the use of #generativeai models in financial analysis within the Rumsfeldian framework of "known knowns, known unknowns, and unknown unknowns." It discusses the advantages of using #ai #models, such as their ability to identify complex patterns and automate processes, but also addresses the #uncertainties associated with generative AI, including #accuracy concerns and #ethical considerations.
This paper introduces the concept of differential privacy (DP) as a novel technical tool that can quantifiably assess the identification #risks of #databases, thereby aiding in the classification of data. By allocating a privacy budget in advance, data controllers can establish auditable and reviewable boundaries between #personal, #anonymous, and #pseudonymous data, while integrating this framework into broader data #riskmanagement practices.
This article highlights the importance of #cybersecurity in contemporary business models and the need for #legal practitioners and #it professionals to work together to assess the extent to which #privacy and #security measures qualify as "appropriate" in the context of #liability #claims and actions for #damages. The article provides guidance on how to move from technical insight to legal #compliance.
Key findings:1. #masstort plaintiff lawyers do not primarily base their litigation and settlement strategy on defendants' #liabilityinsurance, except in cases of insolvency.2. Despite #insurance policies assigning control over defense to the #insurer, mass tort defendants typically retain control over their defense, even when they recover under these policies.3. Mass tort defendants usually use their own funds to settle #claims, seeking indemnification from liability insurers, if available, at a later stage.4. Many mass tort plaintiff law firms rely on non-recourse litigation funding, reminiscent of early forms of commercial insurance like bottomry and respondentia. An emerging insurance market is reducing the cost of this funding and may eventually replace it.