L6: Challenge of balancing risks

Question 1

Risks of AI

Answer 1

ethical concerns, job displacement, security risks, lack of regulation

Question 2

opportunities from AI

Answer 2

enhanced automation, personalized services, improved healthcare, smarter transportation

Question 3

what is the business of banking (balancing risks lecture)

Answer 3

business of banking is taking risks. risks continue to evolve.

Question 4

Elements of climate risk:

Answer 4

Transition risk: regulatory, technology, legal. Physical risk: acute, chronic

Question 5

what are short term and long term global risks.

Answer 5

ST: cost of living, natural disasters, geoeconomic concentration. LT: climate change, biodiversity loss, involuntary migration.

Question 6

Lessons learnt from risk taking in past

Answer 6

AAA may not be AAA, Diversification models can be deceiving, oil prices can go down as well as up, companies with good ideas but negative cash flows still risky.