"The higher the degree of loss aversion, the lower is the likelihood to invest in other risk management activities is when self-protection is implemented. Our results help to explain the lack of demand for catastrophe insurance or cyber risk insurance and have important implications for corporate risk management and public policy."
“... we provide evidence that setting the risk-weighted ratio at 15\% and the simple leverage ratio at 10% would significantly decrease the probability of default without hampering banks' activities.”
The study investigated how ChatGPT and Bard categorize investor risk profiles compared to financial advisors. While there were no significant differences in the risk scores assigned by the chatbots an
The paper suggests that companies developing high-risk AI systems should demonstrate their safety before deployment, arguing for proactive risk management. It proposes a risk management approach where