Optimal Impulse Control for Cyber Risk Management

This paper studies how to optimally protect electronic devices from cyberattacks. It uses mathematical models to understand the spread of attacks and determines the best times to apply protection measures. The researchers developed a complex mathematical framework to solve this problem and used numerical methods to illustrate the results. They found that the optimal protection strategy depends on the type of attack, with different strategies being effective for constant and random attacks.

DETAILED ACCOUNT AND EIOPA OPINION ON THE IMPACT OF INCREASED SIZE THRESHOLDS AS PART OF THE SOLVENCY II REVIEW ON INSURANCE UNDERTAKINGS IN SCOPE OF DORA

“In its Opinion EIOPA is calling on the European Commission to take the necessary actions to avoid disproportionate compliance efforts from small insurance undertakings in the transition period prior to the application of the revised Solvency II Directive.”

EU’s first ever report on the state of cybersecurity in the Union

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"The first report on the state of cybersecurity in the Union provides EU policy makers with an evidence-based overview of the state of play of the cybersecurity landscape and capabilities in the EU. The report also provides policy recommendations to address identified shortcomings and increase the level of cybersecurity across the European Union. "

BOE PRA Operational resilience: Critical third parties to the UK financial sector

The UK introduced a new regulatory framework to manage risks from critical third-party providers (CTPs). CTPs must adhere to strict operational resilience requirements, including governance, risk management, and incident response. This framework aims to ensure the stability of the UK financial system by mitigating potential disruptions caused by CTP failures.

FinCEN Alert on Fraud Schemes Involving Deepfake Media Targeting Financial Institutions

FinCEN (US Treasury Financial Crimes Enforcement Network) warns financial institutions about deepfakes, emphasizing the shift of compliance risks into operational threats affecting finances, operations, and reputation. Firms must adopt tools like metadata analysis and AI to detect fraud. Reframing compliance as operational risk management enhances resilience, aligning compliance with broader strategic and risk mitigation goals.

Solvency II Mandatory Implementation and Analysts’ Forecast Properties

“As analysts are primary recipients of these reports, we investigate whether and how analyst forecast properties have changed following the provision of Solvency II information. Using a sample of EEA insurers and a difference-in-differences design, we find reductions in analysts’ earnings forecast errors at the consensus and individual levels, as well as a decrease in forecast dispersion.”

A Random Forest approach to detect and identify Unlawful Insider Trading

This study proposes a new method for detecting insider trading. The method combines principal component analysis (PCA) with random forest (RF) algorithms. The results show that this method is highly accurate, achieving 96.43% accuracy in classifying transactions as lawful or unlawful. The method also identifies important features, such as ownership and governance, that contribute to insider trading. This approach can help regulators identify and prevent insider trading more effectively.