Digital Resilience and Financial Stability. The Quest for Policy Tools in The Financial Sector
After completing this reading, you should be able to: Describe characteristics of cyber risks and information/communication technology (ICT) risks faced by financial institutions. Assess the interactions between cyber and ICT risks and financial risks and explain how cyber and ICT…
The Crypto Ecosystem: Key Elements and Risks
After completing this reading, you should be able to: Describe the key elements of the crypto ecosystem, including unbacked crypto, stablecoins, smart contracts, and DeFi services. Describe the structural flaws inherent in various elements of the crypto ecosystem. Describe the…
Artificial Intelligence Risk Management Framework
After completing this reading, you should be able to: Describe how organizations can frame the risks related to AI and explain the challenges that should be considered in AI risk management. Identify AI actors across the AI lifecycle dimensions and…
Financial Risk Management and Explainable, Trustworthy, Responsible AI
After completing this reading, you should be able to: Describe the challenge posed by potential model bias and the ethical and responsible considerations surrounding the implementation of AI-driven solutions in financial risk management. Analyze the potential benefits and challenges of…
Artificial Intelligence and Bank Supervision
After completing this reading, you should be able to: Describe historical evolution and common types of AI-based applications used in the financial sector. Explain the advantages of implementing AI-based applications to the banking services companies and their customers. Discuss the…
Review of the Federal Reserve’s Supervision and Regulation of Silicon Valley Bank
After completing this reading, you should be able to: Describe the events leading up to the failure of Silicon Valley Bank. Describe shortfalls and deficiencies in the Federal Reserve’s supervisory oversight of Silicon Valley Bank during the period that the…
Guidance on Managing Outsourcing Risk
After completing this reading, you should be able to: Explain how risks can arise through outsourcing activities to third-party service providers and describe elements of an effective program to manage outsourcing risk. Explain how financial institutions should perform due…
Risk Mitigation
After completing this reading, you should be able to: Explain different ways firms address their operational risk exposures. Compare different types of internal controls and provide examples of each type of internal control. Describe control automation, internal control design, and…
Risk Measurement and Assessment
After completing this reading, you should be able to: Explain best practices for the collection of operational loss data and reporting of operational loss incidents, including regulatory expectations. Explain operational risk-assessment processes and tools, including risk control self-assessments (RCSAs), likelihood…
Supervisory Guidance on Model Risk Management
After completing this reading, you should be able to: Describe model risk and explain how model risk can arise in the implementation of a model. Describe elements of an effective process to manage model risk. Explain the best practices for…
