Risk & Resilience

In a recent talk at Vanderbilt University, Michael Hsu, Acting Comptroller of the Currency, delved into the critical issue of managing risks in the financial sector, particularly concerning the blurring lines between banking and commerce. The event, hosted by Professor Morgan Ricks, provided Hsu with a platform to share insights gained from his extensive experience, spanning the 2008 Global Financial Crisis to his current role overseeing the federal banking system.

The Federal Reserve Board has unveiled the hypothetical scenarios for its annual stress test, a critical measure ensuring large banks remain resilient and capable of lending to households and businesses even in the face of severe economic downturns. In a significant departure, the Board has introduced a pioneering "exploratory analysis" featuring four hypothetical elements designed to probe different risks within the banking system, marking a strategic shift in stress testing methodologies.

The Commodity Futures Trading Commission (CFTC) has issued a crucial customer advisory, warning the public about the rising threat of Artificial Intelligence (AI) scams targeting investors. The advisory, titled "Customer Advisory: AI Won’t Turn Trading Bots into Money Machines," sheds light on the deceptive tactics employed by fraudsters who exploit the potential of AI technology to lure investors into handing over their assets under false pretenses.

In a compelling address at the World Economic Forum Annual Meeting 2024, United Nations Secretary-General Antonio Guterres called on world leaders to confront the existential threats posed by climate change, unbridled artificial intelligence (AI) development, and the imperative need for international governance reforms.

The World Economic Forum (WEF) has released its 2024 Global Risks Report, providing a comprehensive analysis of the prevailing challenges and potential threats to the global landscape. The report paints a sobering picture, highlighting a deteriorating global outlook marked by a myriad of issues ranging from environmental concerns to societal unrest.

In a recent press release, Commissioner Christy Goldsmith Romero, sponsor of the Commodity Futures Trading Commission’s Technology Advisory Committee (TAC), revealed the detailed agenda for the upcoming TAC public meeting on January 8, 2024. The event, to be live-streamed from the CFTC headquarters, will focus on key technology issues impacting financial markets.

In recognition of the significant and evolving risks posed by climate change to the financial sector, the New York State Department of Financial Services (NYDFS) has issued comprehensive guidance to its regulated institutions. The guidance, released on October 29, 2020, emphasizes the importance of integrating both financial and operational risks from climate change into governance frameworks, risk management processes, and business strategies.