Risk Channel delivers the latest, most relevant and useful business intelligence to key decision makers and influencers, each weekday morning.

The Financial Stability Board (FSB), the G20's risk watchdog, says surging global share prices and other assets have left markets susceptible to a crash amid the current uncertain economic and geopolitical backdrop. "While most jurisdictions have seen a rebound in financial markets in recent months, valuations could now be at odds with the uncertain economic and geopolitical outlook, leaving markets susceptible to a disorderly adjustment," said a letter from FSB Chair Andrew Bailey dated October 8 and published ahead of G20 meetings in Washington this week. "The need for global standards and cooperation therefore remains abundantly clear," the letter said.

 

Reuters

Choose AI That Strengthens GRC Oversight  

Artificial intelligence is transforming how organizations manage governance, risk and compliance - but with so many tools emerging, identifying what’s truly effective can be a challenge.

The AI for GRC: What Leaders Need to Know guide helps you evaluate AI vendors with confidence. Learn the critical questions to ask around automation, predictive analytics, ease of use, and data security - so you can separate innovation from hype.

Discover how the right AI-powered GRC solution can enhance efficiency, streamline audits, and strengthen decision-making, all while maintaining the highest ethical and data protection standards.  

Download the guide today and take the first step toward integrating AI that drives smarter, faster, and more secure GRC performance.

Request a Demo

 

The U.S. federal government recorded a $1.8trn budget deficit for the 2025 fiscal year, according to the nonpartisan Congressional Budget Office (CBO), $8bn lower than 2024’s deficit, showing little improvement despite higher revenues. Economists view the continued large shortfall as concerning given that the economy is expanding. Total revenues rose 6% to $308bn, while total spending declined 4% to $301bn. The CBO did not include an official deficit-to-GDP ratio, but based on estimates, it equals roughly 5.9% of GDP, down slightly from 6.4% in 2024.

 

Fortune

Bloomberg

Fox News

Around only 15% of euro zone workers fear their jobs are at stake because of U.S. tariffs, but that could still have a meaningful impact on the economy, European Central Bank researchers have written in a blog post using data from the bank's most recent Consumer Expectations Survey. "Workers who expect to lose their jobs are more likely to actually lose them later," the blog argued. "Hence, while the direct impact of U.S. tariffs on jobs appears to be limited, their impact on some workers can be stronger and might add further drag to firm and consumer confidence."

 

European Central Bank

Reuters

A report by ratings agency Fitch says the U.S. office delinquency rate spiked 42 basis points (bps) in September to 8.12% from 7.7% in August, driven largely by a $180m loan backing the 261 Fifth Avenue office building in Manhattan which defaulted at maturity last month.

 

Reuters

The Future Risks Report by AXA and Ipsos reveals growing public concern over global risks, with 93% of respondents believing crises are increasing. The report highlights a gap between expert recommendations for global solutions and government actions focused on specific risks. Trust in insurers has risen, with 89% of experts and 72% of the public seeing them as key in managing new challenges. Thomas Buberl, CEO of AXA, said: "Insurers have a responsibility: to be architects of resilience." The report identifies climate change and geopolitical instability as top emerging risks for 2025.

 

Insurance Business Magazine America

Federal judges in Massachusetts, Rhode Island, New Hampshire and Maine have become key players in the legal battles over President Donald Trump's policies since he returned to office in January. Analysis by Reuters has found that at least 72 lawsuits challenging Trump's policies have been filed in federal courts in these four states by plaintiffs, including Democratic state attorneys general, advocacy groups and institutions targeted by the administration. Trial court judges have made at least an initial decision in 51 of those cases, ruling against Trump in 46 of them, according to the Reuters analysis. The New England federal trial courts are thus increasingly seen as attractive litigation venues that offer the "best shot" for challengers to White House policies.

 

Reuters

American Dream mall is facing legal challenges for remaining open on Sundays, defying Bergen County's blue laws that restrict nonessential retail operations. Mayor Chris DiPiazza criticized the mall's advertisement promoting Sunday shopping, commenting: “The retail Sunday shopping ad is just another example how American Dream arrogantly ignores laws that other Bergen County stores have followed for decades.” The $5bn megamall argues it is exempt from these laws due to its location on state-owned land. The New Jersey Sports and Exposition Authority has chosen not to intervene, leaving the matter to the courts. American Dream has labeled the lawsuit as a “meritless political stunt.”

 

New Jersey Herald

Ten major banks, including Bank of America and Deutsche Bank, are collaboratively exploring the issuance of a stablecoin linked to G7 currencies in response to the growing demand for digital assets. The initiative aims to "enhance competition across the market" while ensuring compliance with regulatory standards and best practices. As traditional finance adapts to the rise of cryptocurrencies, concerns remain about the regulatory implications and potential risks associated with stablecoins.

 

Reuters

Rating agency S&P has warned of risks from the complexity and lack of disclosure in the private credit market, as U.S. insurers push into the fast-growing asset class.

 

Financial Times

Patrick James, the founder of First Brands Group, has resigned as CEO following the company's bankruptcy filing, which revealed liabilities of over $10bn. Mr James, who had led the auto parts maker for 30 years, will be replaced by Alvarez & Marsal executive Charles Moore on an interim basis. The U.S. Department of Justice is investigating the collapse, which has raised concerns about risky lending in private debt markets.

 

Bloomberg

CNBC

Financial Times

Retailers are delaying or reducing seasonal hiring due to rising tariff costs and economic uncertainty. The trend is affecting the recruitment of temporary workers for distribution centers and stores during the crucial holiday season. While Amazon said on Monday it intends to hire 250,000 full-, part-time and seasonal workers, the same level as a year ago, a report by Challenger, Gray & Christmas suggests that overall holiday hiring for the last three months of the year will likely fall under 500,000 positions, fewer than last year’s 543,000 and the smallest seasonal gain in 16 years. Meanwhile, a number of companies, including Target, Macy's, and UPS, are declining to announce their hiring plans.

 

CBS News

Fox News

Washington Post

Unionized workers at the Dairy Farmers of America plant in northern Vermont have come to a new contract agreement after nearly two weeks of picketing - but Teamsters Local 597 union organizer Chris Clough maintains the strike would have been completely averted if federal labor mediators were involved. Mediators used in the union's past negotiations with the dairy company were fired this spring in cuts by the Department of Government Efficiency, or DOGE. “This time, with the mediators being eliminated as part of the DOGE cuts, that option (of mediation) wasn't there,” Clough said.

 

U.S. News

The White House has begun mass layoffs of federal employees amid the government shutdown. Office of Management and Budget Director Russell Vought confirmed reductions in force, targeting employees in programs lacking funding or misaligned with the administration’s priorities. Departments impacted include Treasury, Education, Commerce, Health and Human Services, Homeland Security, HUD, and EPA. Unions have filed for restraining orders, calling the layoffs illegal.

 

CNBC

Washington Post

Wall Street Journal

The latest report from the Resilient Cities Network and Tokio Marine Group highlights the urgent need for cities to invest in resilience to avoid becoming uninsurable. As climate risks escalate, insurance premiums are rising, with some areas experiencing increases of over 400%. Tokio Marine Group CEO Brad Irick said: "Insurers must extend their role beyond claims payouts to proactive risk partnership." The report emphasizes that cities adopting a portfolio approach to resilience are more likely to retain insurance capacity and attract investment.

 

Insurance Business Magazine America

A study in Canada has found that greater levels of screen time at a younger age are linked to a significant decrease in attainment in reading and maths once children start school. The study, led by experts at the Hospital for Sick Children in Toronto, followed 5,300 Canadian children aged nine and 12 between 2008 and 2023, tracking screen time use during early childhood and later academic achievement. Each extra hour of daily screen time for younger children, the study found, was associated with a 9% decrease in the likelihood of achieving higher academic grades later in childhood. Lead author Xuedi Li said that while "our findings highlight the importance of considering how much screen time children are exposed to, any interventions should also take into account the type of content kids are watching and whether they are watching it alone or with caregivers and friends."

 

The Daily Telegraph