Blockchain
CPA Australia: Financial institutions not adequately prepared for COVID-19 risk
New research of CPA Australia has found financial institutions in the Asia Pacific region were inadequately prepared for a risk like the COVID-19 pandemic and must rethink how to be ready for key risks that may impact their critical operations and their risk management regimes.
The study into governance and sustainability found that only one in 50 banks disclosed a pandemic outbreak as a key risk to their business operations. Japan’s Sumitomo Mitsui Trust Holding was the only lender that had identified a pandemic risk and developed mitigation strategies such as business continuity plans. In the insurance space, just three of 50 insurers — AIA Group in Hong Kong, and Tokio Marine Holdings and MS&AD Holdings from Japan — had identified a pandemic outbreak as a key risk.
The findings are part of a new report, Banking on Governance, Insuring Sustainability, authored by academics from the National University of Singapore (NUS) Business School, and published by global professional accountancy organisation CPA Australia. The report studies the 50 largest listed banks and 50 largest listed insurance companies by market capitalisation from 15 Asia Pacific economies.
Chng Lay Chew, Singapore Divisional President of CPA Australia said, “New disruptions to the global economy such as COVID-19 will force management and boards of financial institutions to revamp their risk management regimes for the new business normal. It is imperative for organisations to rethink how to be prepared for new and possible unknown risks. One important aspect is by having the discipline to continue to invest in and practise high standards of risk management.”
Analytics and technology implementation still nascent
The study also found that the use of analytics for managing risks and in internal audit remain at a nascent stage in the sector. Fifteen banks publicly disclose that they use analytics in managing risks, compared with just eight insurance companies. DBS Group in Singapore was the only bank that publicly stated that it uses predictive analytics to identify emerging risk areas.
With massive technological disruption facing the industry, the report found that most financial institutions have responded by increasing investments in artificial intelligence, machine learning and blockchain.
“Leveraging data analytics and technology can improve risk management and help financial institutions make better strategic and other decisions. However, with greater use of technology comes increased security risks. The increase in technology-related risks and growth in digitisation requires boards to go beyond traditional skills and competencies, and consider technology expertise when recruiting directors,” said report co-author, Associate Professor Richard Tan.
The study found that there is room to increase technology expertise at the board level, including understanding of cyber risk — a key risk for financial institutions.
At the board level, directors with technology expertise remain rare in the industry. Most banks studied have not appointed directors with technology expertise, with Australian and Indian banks performing better in this respect. Only 20 per cent of insurers have appointed directors with such relevant expertise.
“Managing risks of a business requires boards to have a diversity of skills, experience and perspectives, and to avoid behavioural pitfalls such as groupthink and confirmation bias. A robust nominating process, proper succession planning and board renewal are essential to achieving this.
“Risk management, including the identification of key risks, should not be a checkbox exercise, but should instead be informed by a thorough consideration of different types of risks that may impact the business,” said Associate Professor Mak Yuen Teen, also a co-author of the report.
The anticipated return of $9 billion worth of Bitcoin from the Mt. Gox era has the potential to stir anxiety within the cryptocurrency market. This significant influx of Bitcoin, which has been tied up since the collapse of the Mt. Gox exchange in 2014, raises questions about its potential impact on market dynamics and investor sentiment.
The return of these long-dormant Bitcoin holdings may lead to increased volatility and uncertainty in the cryptocurrency market. Market participants are likely to closely monitor the movement of these funds and assess their potential impact on Bitcoin prices and overall market stability.
Additionally, the large-scale return of Bitcoin from the Mt. Gox era may trigger concerns about potential selling pressure and its effect on market liquidity. Investors may anticipate fluctuations in Bitcoin prices as these funds are reintroduced into the market and traded.
Furthermore, the return of these Bitcoin holdings highlights the ongoing legal and regulatory challenges associated with the Mt. Gox saga. The resolution of this long-standing issue could have far-reaching implications for investor confidence and the perception of security within the cryptocurrency ecosystem.
Overall, the anticipated return of $9 billion worth of Bitcoin from the Mt. Gox era has the potential to evoke anxiety among market participants and prompt heightened scrutiny of market dynamics. As the cryptocurrency market braces for this significant development, it remains to be seen how it will navigate the potential challenges and opportunities presented by the return of these funds.
Source: blockchain.news
The post Anticipated Return of $9B Mt. Gox-era Bitcoin May Spur Market Anxiety appeared first on HIPTHER Alerts.
Blockchain
Binance Faces Lawsuit in Canada for Selling Crypto Derivative Products Without Registration
Binance is currently embroiled in a legal dispute in Canada over allegations of selling cryptocurrency derivative products without proper registration. This lawsuit underscores the regulatory challenges facing the cryptocurrency exchange in various jurisdictions.
The lawsuit accuses Binance of offering crypto derivative products to Canadian investors without obtaining the necessary registration from Canadian securities regulators. This legal action highlights the importance of compliance with regulatory requirements in the cryptocurrency industry, particularly concerning the sale of derivative products.
Binance’s legal woes in Canada reflect broader concerns about regulatory compliance and investor protection within the cryptocurrency sector. As authorities worldwide increase scrutiny of cryptocurrency exchanges and trading platforms, companies like Binance face mounting legal and regulatory challenges.
The outcome of this lawsuit could have significant implications for Binance and the broader cryptocurrency industry in Canada. Depending on the court’s ruling, it could lead to increased regulatory oversight and stricter enforcement measures for cryptocurrency exchanges operating in the country.
In response to the lawsuit, Binance has stated that it is committed to compliance with all applicable laws and regulations in the jurisdictions where it operates. However, the outcome of this legal dispute will likely shape the regulatory landscape for cryptocurrency exchanges in Canada and influence their future operations and compliance efforts.
Source: blockchain.news
The post Binance Faces Lawsuit in Canada for Selling Crypto Derivative Products Without Registration appeared first on HIPTHER Alerts.
The Cardano Foundation has announced the launch of Pragma, marking a significant milestone in open-source blockchain development. Pragma aims to revolutionize Cardano by enhancing its infrastructure through innovative open-source projects.
Pragma represents a new chapter in the evolution of Cardano, focusing on improving its underlying infrastructure and expanding its capabilities. The initiative underscores the Cardano Foundation’s commitment to fostering innovation and driving progress within the blockchain ecosystem.
By leveraging open-source projects, Pragma seeks to enhance Cardano’s functionality and scalability, paving the way for broader adoption and increased utility. These efforts are expected to unlock new opportunities for developers and users alike, further cementing Cardano’s position as a leading blockchain platform.
Pragma’s launch highlights the ongoing evolution of Cardano and its commitment to pushing the boundaries of blockchain technology. Through collaborative open-source development, Pragma aims to address key challenges and drive continuous improvement within the Cardano ecosystem.
The Cardano Foundation’s announcement of Pragma signals a significant step forward in its mission to build a decentralized and sustainable blockchain infrastructure. With Pragma, Cardano is poised to embark on a new era of innovation and growth, setting the stage for a future of unprecedented possibilities in blockchain development.
Source: cryptonews.com
The post Cardano Foundation Launches PRAGMA: A New Chapter in Open-Source Blockchain Development appeared first on HIPTHER Alerts.
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