In a landmark move, U.S. President Joe Biden is set to unveil an executive order addressing the broad spectrum of challenges posed by artificial intelligence (AI). The executive order, slated for release on Monday, is designed to promote safety while safeguarding the interests of consumers, workers, and minority groups from potential AI-related risks.
As business dwindles and Chinese authorities tighten their grip on corporate intelligence gathering, several investigation firms are retreating from Hong Kong and relocating their employees. This retreat is a sign of growing concern among foreign companies about the business environment in the city.
In an era where Artificial Intelligence (AI) is at the forefront of technological innovation, the financial services industry finds itself at a crossroads. As AI becomes increasingly pivotal in shaping the global economy, its potential benefits are matched only by its potential risks. In a recent address, the Chief Data, Information, and Intelligence Officer of the Financial Conduct Authority (FCA), Jessica Rusu, shed light on the critical issues surrounding AI adoption in financial services.
The Bank of England (BoE) has announced plans to assess the health of general insurers in 2025 through a rigorous 'stress test,' incorporating a rapid series of shocks. This move comes as regulators are easing capital rules for the insurance sector.
The tumultuous events that unfolded in the global banking sector this year have laid bare serious deficiencies in the oversight and management of major financial institutions, according to a statement from the Basel Committee, a prominent global banking watchdog. As a response to the shocks that reverberated through the industry, the committee has suggested that more robust regulatory guidance may be necessary to prevent future crises.
In a reflection of the evolving financial landscape, systemic risk scores for seven major US banks have surged to unprecedented levels during the second quarter of this year. The spike in systemic risk is attributed to the expansion of trading books and shifts towards temporary funding measures. As these scores continue to climb, analysts are keeping a watchful eye on the implications for financial stability.
In light of the current crisis, adapting risk management to the changing environment and being resilient in the face of unpredictable, high-impact events means that the shift of the ERM function to a more agile, responsive, and reliable function must be reinforced and expedited. The foundation of this responsive outlook is built upon a thorough understanding and assessment of all types of risks and driven by a robust risk culture. By simultaneously addressing the strengthening of risk management and reinforcing risk culture, the next generation of ERM can be cemented in any organization and allow for genuine building of trust in this transformative age.