"Social and regulatory attention has been using fairness and equity as a lens to evaluate the outcomes of existing processes like insurance underwriting. For example, a new law in Colorado, which will come into effect at the beginning of 2023, will require insurers to provide analytical evidence that their operational processes that use inputs of consumer data and predictive models do not result in unfair discrimination against certain consumer groups. Credit-based insurance scores (hereinafter referred to as insurance risk scores) are one example of the inputs used in these operational processes"
“Bearing in mind that unprecedented fiscal measures amid accommodative monetary policies may have distorted regular risk assessment frameworks, it is important for risk managers and supervisors not to underestimate risks.”
"La dynamique de transformation numérique n’apporte pas que des opportunités aux institutions financières mais elle les expose également à plus d'incertitude et de nouvelles menaces. En premier lieu, elles restent à l'heure actuelle des cibles de choix pour tous les hackers, en raison de la nature très sensible des données qu'elles possèdent. Un quart des cyberattaques entre 2019 et 2020 ont touchés les entreprises du secteur financier selon la Banque des règlements internationaux (BRI)."
"Cybersecurity risk has been a growing “non-financial” risk for banks over the years, but there is a very real and growing financial impact from cyber incidents. Cyber attacks regarding sensitive client data can lead to ransom losses, lost revenue, operational interruptions, increased counter-party and reputational risks and customer attrition. Additional costs include data restoration, investigation and response and regulatory and/or legal fines, some of which can be offset by cyber risk insurance."
"Examining cyber-attacks as a shock to a firm’s incentive to appear ESG-friendly, I show that the inside measure hardly improves after the shock."
"The Bank of England said on Monday it was fining Standard Chartered (STAN.L) 46.55 million pounds ($61.51 million) for misreporting its liquidity position to the regulator and for failings in its controls."
"... insurance carriers should internally organize key stakeholders related to AI strategy and development to collaboratively evaluate how they define and develop AI projects and models. If carriers have not yet established broad life cycle governance or risk management practices unique to their AI/machine learning systems, they should begin that journey with haste."