"... this paper considers what problem, if any, the risk-based approach seeks to solve. It suggests that the problem to be solved by the approach is not primarily how to manage AI risks, but how to avoid a potentially over-broad scope of the regulation—a potential created by the broad definition of AI included in the Proposal."
The paper delves into the intertwining of financial institutions and environmental concerns, particularly climate change and biodiversity loss. It introduces a dual framework based on 'impact' and 'ri
The paper explores optimal insurance contracts using decision makers' preferences, combining expected loss with a deviation measure like Gini coefficient or standard deviation. It reveals that using e
“I show that, during a normal economic period, rather than having a disciplining effect, disclosure leads to banks increasing risk taking, consistent with banks facing pressure to offset the costs of