Four developments this week highlight a growing challenge for boards and risk managers: technology risks are becoming increasingly connected to financial and operational risks.
🔴 AI Agents | HKMA AI Governance
The HKMA introduced its ART Framework and issued supervisory guidance for responsible AI adoption, centred on accountability, resilience, and trust. It is also exploring governance for increasingly autonomous AI agents.
🔵 AI & Cyber | The hidden dependency problem
Two critical flaws in PHP, found using AI tools and undetected for over a decade, led cyber agencies in several countries to urge organisations to patch or take systems offline. The challenge is not only applying the fix, but finding everywhere the component runs.
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🟡 Stablecoins | US OCC Rule
The US OCC has reportedly finalised significant regulations implementing the GENIUS Act.
🟠 Cloud Outage | Google Cloud London Disruption
A reported power-related incident disrupted Google Cloud services in London, affecting several financial institutions and causing banking service interruptions.
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The challenge is not simply identifying new technologies. It is understanding how their failure could translate into financial loss. The starting point should always be the potential loss scenario, followed by appropriate controls and insurance.
News → Risk → Control → Insurance
