#416 – AI IS EXCITING & ETHICAL MINEFIELD – MOLLY JACKSON

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If you’re like me, you’ve spent a lot of time over the past few months trying to figure out what this AI thing is all about. Large-language models, generative AI, algorithmic bias – it’s a lot for the less tech-savvy of us to sort out, trying to make sense of the myriad headlines about artificial intelligence swirling about.

But understanding how AI works is just part of the dilemma. As a society, we’re also confronting concerns about its social, psychological and ethical effects. Here we spotlight articles about the deeper questions the AI revolution raises about bias and inequality, the learning process, its impact on jobs, and even the artistic process. Continue reading

#415 – WHAT IS THE FOURTH TURNING? – JAMES TONEY

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Did the Fourth Turning book, published in 1997 cataloging historical events, offer insight into what might happen in the next few years? (1) Can we learn from it to become aware of risks and opportunities, to be prepared for what may be coming?

“The best prophet of the future is the past.” Lord Byron (2) Continue reading

#411 – FOUR TAKEAWAYS FROM RECENT BANKING FLAME OUTS – ANDREW SHEVES

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In the last few weeks, US banks Silvergate, Signature, and the Silicon Valley Bank (SVB) collapsed, while First Republic Bank required a $30bn bailout from larger Wall Street Firms. Meanwhile, in Europe, the Swiss bank Credit Suisse has been bought by rival UBS.

Each of these banks was in a different position, and no single factor caused these banks to get into trouble. However, these recent events provide some essential takeaways for risk and communications managers. Continue reading

#403 – CLIMATE RESILIENCE PLANNING COULD HAVE AVERTED SOUTHWEST’S CHRISTMAS DEBACLE – BOB LEONARD

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Southwest estimates the loss from their scheduling system meltdown to be around $825M. Those are just the direct costs of lost revenue from canceling more than 15,000 of its flights starting on Dec. 22. It doesn’t include the costs for fines, brand erosion and systems upgrades which will increase the loss to well over a billion dollars. Continue reading

#399 – UNDERSTANDING RISK PROFILE IS IMPORTANT IN INSURANCE RISK DECISIONS – ALEX SIDORENKO

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In 2021, risk team implemented a quantitative risk-based approach to insurance renewals which resulted in reducing the cost of insurance by 60% and improving the quality of coverage across all insurance lines. This approach allowed us to save, or rather pay a fair price for insurance across the globe. Key to success was not to rely on market “best practices”, but on testing various hypotheses in the market and relying on data. Continue reading