scholarly journals AI ethics and systemic risks in finance

AI and Ethics ◽  
2022 ◽  
Author(s):  
Ekaterina Svetlova

AbstractThe paper suggests that AI ethics should pay attention to morally relevant systemic effects of AI use. It draws the attention of ethicists and practitioners to systemic risks that have been neglected so far in professional AI-related codes of conduct, industrial standards and ethical discussions more generally. The paper uses the financial industry as an example to ask: how can AI-enhanced systemic risks be ethically accounted for? Which specific issues does AI use raise for ethics that takes systemic effects into account? The paper (1) relates the literature about AI ethics to the ethics of systemic risks to clarify the moral relevance of AI use with respect to the imposition of systemic risks, (2) proposes a theoretical framework based on the ethics of complexity and (3) applies this framework to discuss implications for AI ethics concerned with AI-enhanced systemic risks.

2016 ◽  
Vol 1 (2) ◽  
pp. 22-31
Author(s):  
János Kálmán

Microprudential regulation and supervision – focused on institutional risks – cannot guarantee the stability of the financial system. Therefore special attention should be paid to macroprudential regulation and supervision to address systemic risks. The purpose of this study is to provide the historical context and a theoretical framework for macroprudential regulation and supervision – a new area of economic policy. To this end, we shall examine the causes for the spread of macroprudential policy, its basic concepts, and thirdly, its place within the scheme of economic policies.


Author(s):  
Bernd Carsten Stahl ◽  
Chris Wood

This chapter considers the question how professional issues can be taught in an undergraduate environment where little academic experience is to be expected. It develops a theoretical framework, which justifies the need for such teaching and indicates that codes of conduct can be a useful vehicle to address these issues. Given the constructivist teaching theory that was deemed appropriate for the subject, the chapter proceeds to discuss the realisation of the teaching of professional standards in a HND programme in a UK university. The chapter discusses the result of the module and the strengths and weaknesses of the approach as well as a follow-up investigation into student’s views of professionalism.


Mathematics ◽  
2020 ◽  
Vol 8 (2) ◽  
pp. 180
Author(s):  
Jiang ◽  
Zhang

The world has entered the digital economy era. As a developing country, China's banking industry plays an important role in the financial industry, and its size ranks first in the world. Therefore, it is of great significance to study the systemic risks of China's banks in the digital economy era. We first compare the traditional indicator approach and the market-based approach theoretically, and Conditional Value at Risk (CoVaR) model, a market-based approach, is considered to be an efficient way to discover systemic risk in different perspectives. Based on static and dynamic models, we evaluate the contributions of sixteen China's listed banks to the systemic risk. Furthermore, we model bank exposures, extend the models by considering extreme circumstance, and incorporate the effects of Fintech and non-bank financial institutions. The results show the levels of systemic risks and the corresponding systemic importance rankings vary in different time periods. We find that the contributions of some small banks to systemic risk are even higher than some big banks during the sample period. Moreover, the big banks face less risks than most of the small banks when the banking system is in distress. We make suggestions for improving financial supervision and maintaining financial stability.


2021 ◽  
Vol 14 (7) ◽  
pp. 312
Author(s):  
Daniela Arzu ◽  
Marcella Lucchetta ◽  
Guido Max Mantovani

The purpose of this article is to develop a bank-oriented rating approach, tailored by incorporating the various heterogeneity dimensions characterizing financial institutions, named “Bank-Tailored Integrated Rating” (BTIR). BTIR is able to catch the financial cycle, including the pandemic crisis, and the ongoing change in banking normative from a microeconomic perspective, and it is inherently coherent with the challenging frontier of forecasting tail risk in financial markets in similar ways as in De Nicolò and Lucchetta (2017), although their approach is macroeconomic) since it considers the downside risk in the theoretical framework. The method employed was an innovative integrated rating (IR) statistical and econometrical panel pre-selection analysis that takes into account the characteristics of risk and the greater heterogeneity of the banks. The result is a challenge rating procedure delivering forward-looking preselection requested by the new International Financial Reporting Standard (IFRS-9). The future direction is extremely promising given the increase in idiosyncratic and systemic risks in financial markets.


2020 ◽  
Vol 43 ◽  
Author(s):  
Myrthe Faber

Abstract Gilead et al. state that abstraction supports mental travel, and that mental travel critically relies on abstraction. I propose an important addition to this theoretical framework, namely that mental travel might also support abstraction. Specifically, I argue that spontaneous mental travel (mind wandering), much like data augmentation in machine learning, provides variability in mental content and context necessary for abstraction.


2016 ◽  
Vol 224 (2) ◽  
pp. 102-111 ◽  
Author(s):  
Carsten M. Klingner ◽  
Stefan Brodoehl ◽  
Gerd F. Volk ◽  
Orlando Guntinas-Lichius ◽  
Otto W. Witte

Abstract. This paper reviews adaptive and maladaptive mechanisms of cortical plasticity in patients suffering from peripheral facial palsy. As the peripheral facial nerve is a pure motor nerve, a facial nerve lesion is causing an exclusive deefferentation without deafferentation. We focus on the question of how the investigation of pure deefferentation adds to our current understanding of brain plasticity which derives from studies on learning and studies on brain lesions. The importance of efference and afference as drivers for cortical plasticity is discussed in addition to the crossmodal influence of different competitive sensory inputs. We make the attempt to integrate the experimental findings of the effects of pure deefferentation within the theoretical framework of cortical responses and predictive coding. We show that the available experimental data can be explained within this theoretical framework which also clarifies the necessity for maladaptive plasticity. Finally, we propose rehabilitation approaches for directing cortical reorganization in the appropriate direction and highlight some challenging questions that are yet unexplored in the field.


Sign in / Sign up

Export Citation Format

Share Document