"This paper presents a continuous-time dynamic model of market adoption of #cybersecurity. Individuals choose whether and when to make a precautionary investment in self-protection against the evolving security #risk of direct attack and indirect contagion. The equilibrium adoption path has a ``tipping point'': individual users will invest to get protected all at once when a critical mass of the infected has been reached."
This research studies the impact of #socialmedia on shareholder response to #esg-related #reputationalrisk.
The paper promotes better #riskmanagement and the fair allocation of #liability in #ai-related accidents.
This paper explores #digitalsovereignty in the #eu, examining two of its dimensions: #economic and #normative. Five obstacles are identified: private actors, foreign interference, a #ruleoflaw crisis, #digitalgovernance, and #digitalliteracy. The paper concludes by noting the hard balances needed in #digitalpolicy.
#machinelearning #algorithms are increasingly for #riskassessment in the #insuranceindustry, with hybrid methods often outperforming individual ones. Research has identified challenges such as tackling imbalanced datasets, selecting features, and improving interpretability. Newer methods such as #deeplearning and ensembles may further improve accuracy.
#bayesian data imputation is a technique used to fill in missing data in a variety of fields, including #riskmanagement. By employing imputation techniques to fill in the gaps, #riskmanagers can obtain a more comprehensive and reliable understanding of the underlying #risk factors, enabling them to make informed decisions and develop effective strategies for #riskmitigation.
The paper explores the potential inclusion of #climatechange #risks in the #prudential #regulatoryframework, specifically discussing adjustments to #capitalrequirements and changes to the #riskmanagement and #governance framework. The paper argues in favor of the latter but is more cautious regarding the former.
This study explores the use of #ai #foundationmodels, specifically #chatgpt, in #auditing #esgreporting for #compliance with the #eu #taxonomy.
The findings suggest a positive association between #insurers larger exposures to #risk and higher holdings of #brownassets with higher sensitivity to #climatechange and #transition risk.
"... its ability to provide relevant #riskmitigation strategies was identified as its strongest aspect. However, the research also revealed that #chatgpt's consistency in #riskassessment and prioritization was the least effective aspect. This research serves as a foundation for future studies and developments in the field of #ai-driven #riskmanagement, advancing our theoretical understanding of the application of #aimodels like ChatGPT in #realworld #risk scenarios."