RiskQuest’s Post

𝗕𝗶𝗴 𝗻𝗲𝘄𝘀 𝗶𝗻 𝘁𝗵𝗲 𝘄𝗼𝗿𝗹𝗱 𝗼𝗳 𝗔𝗜!     The European Union has just approved the world's first comprehensive AI regulation. This first of its kind legislation aims to ensure that AI systems are safe, trustworthy, and aligned with fundamental rights.     𝗞𝗲𝘆 𝗳𝗲𝗮𝘁𝘂𝗿𝗲𝘀 𝗼𝗳 𝘁𝗵𝗲 𝗔𝗜 𝗔𝗰𝘁:     1. A risk-based framework. AI systems are classified into different risk levels with more stringent requirements for higher risk systems.      2. Defines prohibited practices. The act bans certain AI practices that pose significant risks to the fundamental rights of European citizens.      3. Scope. All AI systems that will be used in the European Union will need to comply.      4. Governance and enforcement. A multi-layered governance structure will be created to ensure effective oversight.      5. Penalties for non-compliance. Fines that are based on annual turnover will be implemented to ensure that all entities, regardless of size, comply with the act.      6. Transparency. High-risk AI systems will be registered in an EU database and must undergo a fundamental rights impact assessment.     7. Supporting innovation. AI developer sandboxes will be created where AI systems can be tested and validated in real-world conditions.   𝗖𝗼𝗿𝗲 𝗖𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲𝘀 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀 𝗜𝗻𝗱𝘂𝘀𝘁𝗿𝘆:    The AI Act introduces several challenges to the Financial Services Industry on top of its already highly regulated model landscape and competitive market to navigate.     Below we highlight the Core Challenges.    -> Definitional clarity and implementation  The AI system classification definitions need to be interpreted and applied correctly in classifying the systems in the industry. This will require extensive training and possibly the creation of new roles focussed on AI compliance.     -> Navigating the broad scope of the AI act.   Integrating the regulation's requirements into the overall business strategy, ensuring all departments align with the new standards.      -> Existing model governance.  The model risk management practices of financial institutions, including validation, policies, governance structures, etc., will need to adapt to comply with the AI act.    -> Balancing innovation and compliance.  The financial industry must innovate within the constraints of the AI Act ensuring that new AI applications meet the regulatory requirements without stifling innovation.         At RiskQuest (Part of Zanders Group), we are proactively working to align with the AI Act’s requirements to ensure our clients remain ahead of the curve. RiskQuest provides risk management advice to financial institutions. Our team shares a solid background in risk management, (risk) modelling, and years of experience within Europe’s leading financial institutions.     Reach out to learn how we can help you navigate these new regulations effectively. 

We all know that eggs are prone to breakage. With this in mind, the Easter Bunny (Alun, as we’ve called him) knows that potential catastrophe awaits over Easter. Ever wonder how Alun ensures his eggs are delivered to children still intact? It turns out that he’s something of a mathematician! 👨🔬 Read our blog to discover the cunning strategy the Easter Bunny explores to safeguard the delivery of his eggs! 🐰 #easter #probability #holiday #diversification

On Friday, March 15th, we had the pleasure of hosting an Inhouse day with Vectum at our office as part of the Vectum Business Tour. During their visits, the students had the opportunity to explore the complexity of credit risk through a case study. We hope that the students gained valuable insights into the dynamic field of quantitative consultancy and what RiskQuest has to offer.   A big thank you to all the students for their enthusiasm, and a special thank you to Vectum for organizing the Business Tour.

At RiskQuest we have expanded our knowledge in the environmental domain of ESG recently 🌿. This ESG knowledge, together with years of experience in financial risk modelling, enables us to operate on the fine intersection of regulation, (climate) risk and modelling 📈 . Through several hands-on projects at large financial institutions we gained experience with the intricacies of this relatively new domain ♻. #ESG #sustainabillity #ESGregulation #NetZero #data https://lnkd.in/eyMXiCrh

Achmea Bank and RiskQuest began a long-term partnership in 2019 to achieve A-IRB compliance. By 2023, they succeeded, with De Nederlandsche Bank granting Achmea Bank an A-IRB license 🎉 . The partnership's success is attributed to Achmea Bank's strategy as a network bank, RiskQuest's pragmatic approach, and a collaborative environment built on trust 🤝. Time to look back at the partnership and discuss what lies ahead ! 😀 #Achmea #IRB #license https://lnkd.in/eMR4pRvF

During the day we measure and manage risks. After work, we take (calculated) risks! We had great fun on Friday with laser tag organised in the RiskQuest office - making the most of our unique office space in the heart of the city! 🤗

We recently sat down with our colleague Dick de Heus, FRM to discuss some of his experiences with RiskQuest! 💬 ❓ - Can you tell me about your journey at RiskQuest? I started as a working student in March 2017. Right from the start I joined a credit risk model development projects with two other RiskQuest colleagues. As I enjoyed the topic, I decided to write my thesis within RiskQuest about AI applications in credit risk modelling. The guidance from my RiskQuest supervisor was very helpful. After I graduated, RiskQuest offered me a consultant position which I gladly accepted. When I started as a consultant in October 2017, I developed a model for risk and return projections for RiskQuest’s investment fund clients. Ever since 2018, I have had many interesting model development and validation projects at several Dutch banks. ❓ - What do you find most exciting and rewarding about working at RiskQuest? RiskQuest gives me the opportunity to combine my interest in credit risk, with market risk modelling for RiskQuest’s investment fund clients. With some exceptions during full-time engagements, I have been working with other RiskQuest colleagues to further develop the model I built when I started in 2017. It is rewarding to build enduring relationships with RiskQuest’s returning clients, some of which I have known from the start of my full-time employment here. ❓ - Could you share a specific project or client engagement that you found particularly exciting or challenging and how the team tackled it? The most challenging yet exciting project has been a credit risk model recalibration project for a large Dutch bank. Deadlines were tight and we worked on two portfolios with different characteristics at the same time. Luckily, I worked together with a great team of RiskQuest colleagues: dedicated to deliver high quality, working hard and efficiently, and I enjoyed the personal dynamics within the team! ❓ - How does RiskQuest stay up-to-date with the latest industry trends and technologies, and how does that impact your work? There is hardly any Friday without internal knowledge sharing sessions. Everyone has (and takes) a role to ensure that RiskQuest is up to date with the latest techniques, but especially with relevant regulation applicable to modelling. ❓ - What advice would you give to potential candidates who are considering a career at RiskQuest? Be open to RiskQuest about your interests in topics, modelling techniques or type of engagement you like most. My experience is that RiskQuest is willing to enable you to invest time and make plans for how to develop your interest into a specialism!