This Week in RiskTech News: April 10th
April 11, 2023
RiskTech News is your go-to source for everything you need to know about the latest issues impacting risk managers. From cutting-edge research unveiling new insights on risk management strategies to real-world effects of major cyber security breaches, we’ll cover it all. We pride ourselves on delivering comprehensive coverage of the latest developments in the field, ensuring that readers stay abreast of critical updates anytime, anywhere. With high stakes and technology rapidly changing the game, reading RiskTech News has become increasingly essential for staying ahead on risk tech. So join us today as we navigate through this ever-evolving landscape of risk management!
NASDAQ: Managing Risk for Financial Institutions With Contract Intelligence
- The recent banking crisis has called attention to the risk factors financial institutions must manage when dealing with contracts.
- Financial risks, such as a bank’s overall health and investments, require special attention to certain provisions in contract agreements.
- Compliance risk includes the need for current financial institutions to investigate potential banking partners and their ability to determine if agreements contain non-transfer clauses.
- Reputational risk can arise when customers question an institution’s security or responsibility.
- Operational risk arises from fraud, processing mistakes, system disruptions, and communication issues, which require organizations to have access to actionable data within their contracts.
- Contract technology such as generative AI, machine learning, and OCR can be used to accelerate regulatory audits, expedite negotiation cycles and evolve risk management strategies.
Supply & Demand Chain Executives: Arming the Retail Supply Chain against Risks
- Supply chains have been increasingly under pressure due to the digital transformation and bad actors.
- Cyberattacks on supply chains rose by 51% in 2021, highlighting the need for improvement in security.
- President Biden and his administration took steps to secure supply chain systems against risk and vulnerabilities.
- The expansive threat surface and lack of visibility of external partners make cyber security a challenge for the industry.
- To protect supply chains, leaders should equip themselves with principles, best practices, and measures including: establishing security requirements with vendors, automating manufacturing and testing processes, implementing secure booting processes, and facilitating domestic production and adequate stockpiles.
9 & 10 News: Meijer Recalls Premade Salads With Potentially Harmful Bacteria
- Meijer has recalled some of its salads due to potential contamination with Listeria monocytogenes.
- This bacteria can cause fever, severe headaches, stiffness, nausea, abdominal pain, and diarrhea in young people, elderly persons, or those with weakened immune systems.
- The recall applies to salads made with Revolution Farms lettuce in Michigan and other states that are sold in clear plastic containers with a “Fresh From Meijer” sticker.
- No illnesses related to the recall have been reported at this time.
Risk & Insurance: Top 4 Business Risks Keeping Mid-Sized Company Executives Up at Night, According to a New QBE Report
- According to QBE’s 2022 Mid-Sized Company Risk Report, executive concern over a wide range of risks rose 18% on average in 2022 compared to 2021 and was higher than in 2020.
- Thomas Fitzgerald, president of commercial insurance at QBE North America, noted that there is a distinct opportunity for mid-sized companies to lean on their broker and insurer for guidance.
- The top 12 macro concerns include financial risk, digital risk, business interruption risk, and organizational concerns.
- Financial risk concerned executives the most due to the inflationary environment and potential recession. Digital risks ranked high due to cybercrime becoming increasingly sophisticated and business interruption risk was heightened by the pandemic impact. Organizational concerns included talent attraction/retention, M&A deals conducted virtually, and hybrid work arrangements.
- Despite an increased concern about all these macro risks, preparedness has not increased as there is a lack of internal capacity/expertise or partner needed to develop tailored solutions that help avoid/transfer or mitigate risk.