Author: Noah Jellison

What does the future of AI look like? No one knows. Insights and information from The Risk Institute shows just how difficult it is to regulate such powerful tools — and how some countries and organizations are trying.

Over the past several years, we have seen an increasing focus on climate change and other related environmental considerations from businesses worldwide. Most recently, the unprecedented increase in wildfire frequency and severity has highlighted a new and complex challenge for some businesses.  Wildfires and other natural disaster events, such as floods and earthquakes, that were once considered purely environmental disasters are starting to pose new risks for corporate operations and sustainability.

On July 26, the U.S. Securities and Exchange Commission (SEC) formally approved and adopted new cybersecurity disclosure rules for public companies. First proposed on March 9, 2022, and then closed and reopened several times for comment periods through May 2023, the highly anticipated new rules require registrants to disclose material cybersecurity incidents they experience and to disclose on an annual basis material information regarding their cybersecurity risk management, strategy and governance. Foreign private issuers are also required to make comparable disclosures. 

In today's rapidly evolving business landscape of emerging technologies and capabilities, geopolitical instability and unforeseen global events, organizations are facing unprecedented challenges. Traditional notions of enterprise risk management and contingency planning are proving to be challenging in a new era where disruptions can strike from multiple fronts simultaneously.

A wise uncle once said to his nephew in a movie, “with great power comes great responsibility.” This adage has never been more true as it pertains to the emergence and popularity of AI. However, organizations are starting to reflect on and question who ultimately bears this responsibility from an enterprise risk management perspective.