#audit is increasingly being called upon to provide assurance on #esg#claims made by their clients, in addition to assessing the accuracy of financial numbers. The concept of #doublemateriality, which involves assessing materiality from both financial and non-financial aspects, is becoming increasingly important in audits. This paper proposes an audit approach that incorporates a “double materiality” lens of financial and ESG data to evaluate the #compliancerisk of ESG #disclosure.
This report presents the findings and recommendations of the Open Loop's policy prototyping program on the #eu#artificialintelligence Act (#aia ), which involved 53 AI companies participating in an online platform to provide feedback on selected articles of the AIA. While the majority of the participants found the provisions to be clear and feasible, there were areas for improvement to ensure the effectiveness of the AIA. The report provides the legislator with nine recommendations, including revising the taxonomy of AI actors, providing guidance on #riskassessment, concrete guidance for technical documentation and #dataquality requirements, ensuring qualified staff for human oversight of AI, and maximizing the potential of #regulatorysandboxes.
"We describe a simple model of #insurance demand that can be applied to the #propertyinsurance, #liabilityinsurance, #lifeinsurance, and #healthinsurance markets. We also demonstrate how #riskaversion affects a variety of real-life insurance decisions made under conditions of #uncertainty, including how much the market will bear to pay for insurance administrative expenses and how demand varies for different types of #autoinsurance#coverage.”
"The findings show the positive associations between #remotework and #cybersecurityrisk."
"We show that pairwise counter-monotonicity implies negative association, and it is equivalent to joint mix dependence if both are possible for the same marginal distributions. We find an intimate connection between pairwise counter-monotonicity and risk sharing problems for quantile agents."
"... we revisit the study of an optimal risk management strategy for an insurer who wants to maximize the expected utility by purchasing reinsurance and managing reinsurance counterparty risk with a default-free hedging instrument, where the reinsurance premium is calculated by the expected value principle and the price of the hedging instrument equals to the expected payoff plus a proportional loading."
The study highlights that while modern states have developed concrete strategies to respond to potential threats, the resemblance of these strategies to one another could create unexpected challenges. The dynamic nature of the internet and the multitude of actors and sources of risk could put conventional wisdom to the test at a stage where the scope for response is limited. This highlights the need for states to continually adapt their strategies to address emerging risks and avoid relying solely on common knowledge or uniform thinking.
"Shocks to disaster costs seem to decrease all type of emissions significantly and also increase renewable energy use significantly. The occurrence of natural disasters increases the political disagreement among U.S. politicians, as well as, the climate policy uncertainty, highlighting the need for efficient policymaking and regulations. "
"... studies in various findings suggests a positive link between ESG and the financial performance of an organization."
"Our model yields richer separating Nash equilibria than pure moral hazard and pure adverse selection models, although separating Nash equilibria may not exist in some cases. It also retains some properties, for example, no full insurance and the positive correlation between insurance coverage and risk type, in those benchmark models. Our study on comparative statics indicates that, under some conditions and with some exceptions, the optimal indemnity and premium decrease with disutility from effort, increase with potential loss, and decrease with the initial wealth of the insured."