The Risk With AI Is Everyone’s Problem And More
Now You KnOW features quick, hopefully insightful takes on the issues of the day that matter most to you.
Weekend must read
Artificial intelligence (AI) brings the potential for a more accurate and equitable approach. But when it goes wrong, it goes wrong in a bigger and faster way. Monitoring and assessing AI risk calls for a cross-cutting approach that goes beyond model risk and touches everything from technology, data, and process to legal, compliance, regulatory, ethical, reputational, and cybersecurity.
Did you know?
88% of global institutional investors are comfortable with blockchain-based technology and digital representations of cash, according to a 2022 Celent survey
Decentralized finance, or DeFi, which uses blockchain-based smart contracts to automatically execute a variety of financial transactions without human intervention, has the potential to transform the world of finance. But to make the jump into he mainstream, it needs to incorporate the same, or higher, level of security standards and safeguards that have been developed over decades in the finance industry.
Industry briefing
Transitioning to a low-carbon economy: We are proud to be supporting the Secretariat of the Task Force on Climate-related Financial Disclosures (TCFD) to help improve and increase reporting of climate-related information. The TCFD’s 2022 Status Report marks five years since the release of the first recommendations.
Next up for digital assets: Our digital asset experts have just wrapped up attending, hosting and judging at the Singapore FinTech Festival and gave us an overview of the future for digital assets.
Corporate scoop
Welcome back boomerangs: Against the backdrop of the great resignation, employers need to maintain a happy and healthy workplace culture that encourages employees to grow with them—in whatever capacity that implies.
Bumpy ride ahead: Consumers may be tightening belts in the face of inflation, and supply chain disruption may still be vexing companies. But those enterprises that build a solid process for sales, inventory, and operations planning (SIOP) typically see less lost revenue. They also are able to maintain lower inventory levels and have more flexibility in their operating costs.
Oliver Wyman in the news
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Spotlight on COP 27
Each week we’re going to look at the latest climate and sustainability insights in the run-up to the 27th Conference of the Parties to the United Nations Framework Convention on Climate Change — otherwise known as COP27. This week:
Scope 3 emissions, on average, make up 78% of corporate emissions. We must cut emissions by half this decade to avoid irreversible effects of climate change. The Oliver Wyman Forum’s Climate Action Navigator can show business and policy leaders how to do it.
Who to follow
Sam Ridgeway, principal on the team that supported UOB in developing its net-zero targets
Rana Nawas, transportation and services partner and speaker at the recent United Nations Economic and Social Commission for Western Asia
Siân Townson, director of data and analytics, attending Risk Minds next week
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Principal - FINPRO Marsh Specialty Practice
2yGreat insight on AI. Just look at the collapse of the TerraUSD. Whilst market forces may have been at play, AI played a big role in valuations of assets underpinning the Stable coin. The rest is history.
Realtor Associate @ Next Trend Realty LLC | HAR REALTOR, IRS Tax Preparer
2yThanks for sharing.
Global Insurance Technology Services Executive
2yGood read!