Shocks to Transition Risk

We propose and implement a method to identify shocks to #transitionrisk addressing key challenges regarding its definition and #measurement. Our shocks are instances where significant new information about the economic relevance of climate change increases the valuation of #greenfirms over #brownfirms. To illustrate our method, we identify shocks to transition risk in the #us. These shocks have important aggregate effects, also inducing #financialinstability. They are […]

Can We Nudge Insurance Demand by Bundling Natural Disaster Risks with Other Risks?

“Our findings show that demand is overall higher to insure separate risks than to cover all risks together in a bundled insurance policy in the UK, whereas no significant difference is found between demand for bundled insurance and single policy insurance in the Netherlands. This difference in preference across the two countries is partly associated […]

Comparative Analysis Regulatory of AI and Algorithm in UK, EU and USA

“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.” Lire

Artificial Intelligence Regulation in the United Kingdom: A Path to Global Leadership?

“… 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 […]

The Status of People Risk Management in UK Banks

“… some operational risk managers are working more closely with their human resources partners to develop a more cohesive approach to people risk management. In the context of current reforms to the capital requirements for operational risk” Lire

Measuring Capital at Risk in the Uk Banking Sector: A Microstructural Network Approach

“We … estimate the quarterly evolution of expected losses (Capital at Risk) for the UK banking sector, and via Monte Carlo simulations the stochastic distribution of UK banks’ losses to study the severity and likelihood of tail-events (Conditional Capital at Risk). In the end, we provide insights on the impact of the Covid-19 pandemic on UK banking […]

Brexit, Data Adequacy, and the EU Law Enforcement Directive

“The analysis discusses the overall negotiations process underpinning Brexit and examines the key resulting regimes, including the Trade and Cooperation Agreement (TCA) and the EU-UK data adequacy agreements granted under the GDPR and the LED.”    Lire