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From supply chain to regulatory enforcement, data privacy, GRC controls, whistleblowers, and risk management strategies. Risk Channel is the only trusted online news source dedicated to covering current headlines, articles, reports and interviews to make sure you’re at the forefront of changes in the risk industry.
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Recent Editions
Risk Channel
North America
Twenty-six Meta employees have sued the company, alleging that AI-assisted systems used during mass layoffs disproportionately selected workers with disabilities, medical conditions, pregnancies or caring responsibilities. The plaintiffs claim employee rankings considered productivity, AI token use, communications, documents, keystrokes, screen content, emails, and browser history, disadvantaging those who had taken medical leave. They are seeking to pause layoffs scheduled to begin on July 22 while pursuing individual arbitration claims. The lawsuit also alleges Meta failed to test its systems for discrimination under California and New York City rules. Meta rejected the accusations, with a spokesperson stating: “Workforce management and organizational decisions were and are made by people, not AI.” The case appears to be the first major U.S. lawsuit challenging the alleged use of artificial intelligence to determine layoffs and could test how existing employment protections apply to automated workplace decision-making.
Full Issue
Risk Channel
UK/Europe
Seven years after London Capital & Finance collapsed owing £237m, the Times reports that similar concerns are emerging around loan-note schemes marketed to ordinary investors. The FCA warns these high-return investments are particularly risky but says a legal exemption allows unregulated promoters to rely on investors self-certifying as sophisticated. Collapses including 79th Group and Godwin Capital have left about £365m owed, while Hunter Jones has previously introduced clients to failed schemes such as Dolphin and Magna. Ombudsman findings concluded inexperienced investors were wrongly classified and inadequate due diligence was conducted. Hunter Jones says it never knowingly promoted fraud, has strengthened its practices and now follows a different model. The FCA has asked the Treasury to consider banning self-certification and making promoters verify investor eligibility.
Full Issue
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“Over recent weeks as politicians signal that societies now need to live with Covid-19 and have announced the lifting of distancing restrictions some high-profile CEOs have publicly called for their workforces to re-embrace the office as the Covid pandemic threat recedes
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Back in the distant 1980s if you wanted to demonstrate your environmental and ethical credentials it was sufficient to shop at or purchase shares in retailer The Body Shop.
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