Panel on Effective risk management: leveraging the cloud, AI & data

The introduction of new technologies and processes brings huge opportunities for the financial services industry. The access to instant and more comprehensive data, as well as the application of new analytical capabilities allows the industry to better measure and assess risks. It contributes to a risk-based approach to decision making and a better optimisation of resources. At a time where regulation and compliance are becoming increasingly important cost drivers, technology can help manage some of these burdens financial institutions face. At the same time, it raises important new questions for the supervisory community. Technology offers the opportunity for new and innovative financial centres to differentiate themselves globally. It allows for financial markets to become even more integrated. At the same time it requires a new skillset from supervisors and challenges the way supervision is being conducted, including in relation to outsourcing and the delegation of services.

What are some of the main trends in the adoption of AI, cloud and data sharing in the area of risk management? Are these trends consistent across the financial sector or are we seeing patterns of early adopters? How is the adoption of new technologies for risk management purposes expected to evolve over the next years? Are there limits of quantitative analysis? What does the use of new technologies in risk management mean for the supervisory process? Are Europe’s supervisors equipped to adapt to the new market realities? What type of a regulatory approach should Europe adopt? The EU’s current preference is for cross-sectoral solutions, such as in the AI Act, GDPR or Data Governance Act. Is this sufficient or do we need sector-specific regulation? How do we balance the need for exploratory innovation with the need for a level-playing field and EU-wide supervisory convergence?
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