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 asked some of our new colleagues how their first months at RiskQuest have been! Gideon Davidson: "My first two months at RiskQuest have been great and went by quickly! Everyone here is really friendly and welcoming, which makes it easy to ask for help, see what other projects are happening, and to get to know my coworkers. The team is full of intelligent and hard-working people, which motivates me to bring out my best as well. I'm excited about the news about RiskQuest and Zanders, as there are interesting opportunities ahead. Can't wait!" Kilian Buis: "Working at RiskQuest has been great! Although I only started 2 months ago, I have already learned a lot from my knowledgeable colleagues, and I already got the opportunity to work on a challenging project at a Dutch bank. The mix of challenging work and an open company culture was exactly what I was looking for after graduating. From the first day, I have felt very welcome, and I have enjoyed all the social events that have been organized!" Efe Beydogan: "I joined RiskQuest as a working student in software engineering about 7 months ago, and the time has literally flown by! One of the things I love the most about RiskQuest is that everyone at the office is very friendly and approachable, in addition to being exceedingly smart. I have really enjoyed working on the Navigator with my fellow colleagues and contributing to the development of this exciting product. I am looking forward to see what the future has in store for both RiskQuest and the Navigator!" Ilya Davidson: "I joined RiskQuest in December as a Working Student and I have been enjoying working for the PRIIPs team for the past few months. What I love the most is how helpful everyone is and how everyone has their own expertise. I've not only learned a lot from the projects I'm working on, but also seeing what my colleagues are doing - you learn a lot just from being around ambitious and intelligent people."

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! 🤗