While #financialrisks, #politicalrisks, #compliancerisks, and #cyberrisks are more easily quantifiable, #esgrisk presents a challenge for boards to identify, assess, and develop plans to its #riskmitigation. Using #nestlé USA as a case study, the article highlights how #esg#risks can migrate across different pillars: what initially appeared as #supplychainrisk moved across pillars into #litigation and #businessrisk before settling as ongoing ESG risk proper.
This article discusses the need for #regulation of #robots and #ai in #europe, focusing on the issue of #civil #liability. Despite multiple attempts to harmonize #eu#tort #law, only the liability of producers for defective products has been successfully harmonized so far. The #aiact, published by the #europeancommission in 2021, aims to #regulate AI at the European level by classifying #smartrobots as "high risk systems", but does not address liability rules. This article explores liability issues related to AI and robots, particularly when using #deeplearning #machinelearning techniques that challenge the traditional liability paradigm.
This study investigates the factors affecting the #capitaladequacy of commercial #banks in #bangladesh using panel data from 28 banks over the period of 2013-2019. The study employs three analytical methods, including the Fixed Effect model, Random Effect model, and Pooled Ordinary Least Square (POLS) method, to analyze the Capital Adequacy Ratio (#car) and #tier1#capitalratio. The study finds that capital adequacy is significantly influenced by several factors, including #leverage, #liquidityrisk, #realgdp, net profit, size, and #inflation.
This study proposes a new approach to the analysis of #systemicrisk in #financialsystems, which is based on the #probability amount of exogenous shock that can be absorbed by the system before it deteriorates, rather than the size of the impact that exogenous events can exhibit. The authors use a linearized version of DebtRank to estimate the onset of financial distress, and compute localized and uniform exogenous shocks using spectral graph theory. They also extend their analysis to heterogeneous shocks using #montecarlo#simulations. The authors argue that their approach is more general and natural, and provides a standard way to express #failure#risk in financial systems.
"We compile a comprehensive dataset of adverse #cyberevents experienced by #us firms. We then categorize #cyberincidents by their detrimental impacts on firms' assets and operations, e.g., #datatheft, #ransomwareattacks, #securitybreaches, #denialofservice attacks, and show that firms suffer significant value losses across multiple cyber categories."
"... the results provide empirical evidence that #twitter#sentiment and media attention ultimately fueled and accelerated the crash dynamics of #siliconvalleybank apart from the asset-liability mismatch caused by inappropriate #riskmanagement. The findings also emphasize the importance of #socialmedia and herding behaviour for #financialstability."
This paper that explores the design of #climate#stresstests to assess #macroprudential#risks from #climatechange in the #financialsector. The authors review current climate stress #scenarios employed by #regulators, highlighting the need to consider dynamic policy choices, better understand feedback loops between climate change and the economy, and explore compound #riskscenarios. They argue that more research is needed to identify channels through which plausible scenarios can impact credit risks, incorporate #bank-lending responses to #climaterisk, assess the adequacy of climate #riskpricing in #financialmarkets, and better understand the process of expectations formation around the realizations of climate risks.
This paper explores the #uncertainty around when #data is considered "#personaldata" under #dataprotection#laws. The authors propose that by focusing on the specific #risks to #fundamentalrights that are caused by #dataprocessing, the question whether data falls under the scope of the #gdpr becomes clearer.
"#banks that did well in the #gfc also did well in the #pandemic while banks that did poorly during the GFC also did poorly during the pandemic."
"This article discusses the recent bank failures of #svb and #signaturebank and analyzes the balance sheets of these banks to determine if they were outliers or if they represent a systemic problem in #riskmanagement... Our analysis suggests that SVB and Signature were not representative of the canary in the coal mine and that they do not represent the average risk among #banks, but a classic #bankrun run cannot be precluded."