"The European Artificial Intelligence Board (EAIB) would be established as a new enforcement authority at the Union level. National supervisors will flank EAIB at the Member State level. Fines of up to '6% of global turnover, or 30 million euros for individual corporations' can be imposed."
"... there is a risk that the EU’s Network and Information Systems Directive (‘NIS Directive’) might lead to only incremental improvements in the cybersecurity of Europe’s critical infrastructure and digital services, while generating substantial compliance activity, aimed at placating regulators and reassuring the general public."
"... a growing domestic emphasis from the central government on promoting innovation through weakening checks will undermine the efficacy and ethical permissibility of initiatives. Likewise, the success of AI governance initiatives will be heavily influenced by decisions made in other jurisdictions, including the European Union. If left unaddressed, these factors risk transforming the UK into a reluctant follower, rather than a global leader, in AI governance."
"Our findings offer new evidence on how economic shocks transmit to banking industry losses with implications for risk management and supervision."
"... insurance pricing can accelerate the incorporation of climate risk in asset markets."
"We use firm-day level data from RepRisk about negative operational incidents that are classified into environmental, social, and/or governance issues. We find that analyst outputs predict negative ESG incidents, suggesting that analyst outputs contain information that is predictive of these events."
"... requirement releases are more effective for banks with a low capital headroom over requirements and do not trigger additional risk-taking. These findings provide key insights on how to design effective bank capital requirement releases in crisis time."
"We apply Weick’s (1995) sensemaking framework to examine four foundational tensions of cyber-resilience: a definitional tension, an environmental tension, an internal tension, and a regulatory tension. We then document how these tensions are embedded in cyber-resilience practices at the preparatory, response and adaptive stages. We rely on qualitative data from a sample of 58 cybersecurity professionals in the financial sector..."
"Rebalancing regulation towards simplicity may produce Pareto-improving solutions, and encourage better decision making by authorities and regulated entities. However, addressing systemic risk in a complex financial system should not entail the replacement of overly complex rules with overly simple or less stringent regulations."
"... banks with robust pre-crisis regulatory capital ratios are less risky (have a lower insolvency risky) relative to less-capitalised banks amid the crisis period. This suggests that the post 2007-09 Basel reforms have succeeded, to some extent, in strengthening the risk-resilience of banks during the Covid-19 economic fallout."