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

A hacker has gained access to a Bain & Co internal AI tool used by part of the consultancy’s private equity practice to help assess companies for due diligence and investment analysis. CodeWall - an autonomous offensive security platform - said it had a foothold on the platform within 18 minutes. The hacker has previously exposed cyber security flaws in systems at rival consultancies McKinsey and BCG.

 

CodeWall

Financial Times

Securities and Exchange Commission chair Paul Atkins has said retail investors should “get out of the kitchen” if they cannot “take the heat” of investing in private credit.

 

Financial Times

Chinese President Xi Jinping told Spanish Prime Minister Pedro Sánchez on Tuesday in Beijing that the international order is "crumbling into disarray." Bloomberg notes that Xi used a Chinese phrase indicating not only chaos but also moral decay. Spain is one of China’s closest friends in Europe. “Both China and Spain are nations of principle and integrity,” Xi said, adding that the two sides should “enhance communication, consolidate mutual trust, and cooperate closely to resist any regression toward the law of the jungle.”

 

Bloomberg

The IRS has warned taxpayers about a rise in artificial intelligence-driven scams ahead of tomorrow's Tax Day, highlighting increasingly realistic robocalls that use official terminology and spoofed caller IDs to appear legitimate. The agency said scammers are leveraging AI to mimic IRS language and programs, often pressuring individuals with false claims about tax relief or urgent action, while reminding taxpayers that it typically initiates contact by mail and does not demand immediate payment or threaten arrest. The IRS also cautioned against relying on AI tools for tax advice, noting risks of inaccurate information, as broader fraud losses continue to surge alongside more sophisticated scams.

 

ABC News

Japanese policymakers and regulators are increasingly concerned that foreign payment apps such as Alipay and WeChat Pay may be enabling transactions that bypass the country’s domestic financial system, making them difficult to track for tax and anti-money laundering purposes. In some cases, payments made within Japan could be settled through overseas infrastructure, leaving little visibility for local authorities. While many foreign app transactions are routed through domestic networks and remain traceable, officials warn that those processed entirely offshore could create regulatory blind spots and potential risks. Authorities acknowledge the scale of such activity is unclear, but caution that larger, untracked flows could pose challenges around financial oversight and illicit activity.

 

Japan Times

Former Lafarge CEO Bruno Lafont has been sentenced to six years in prison for paying €5.6m ($6.6m) to Islamic State (IS) and other terror groups in return for allowing the company’s workers continued access to its Syrian plant. Lafarge, which is now part of the Swiss conglomerate Holcim, paid the money via its subsidiary Lafarge Cement Syria (LCS).  Seven other employees were also found guilty on terrorism charges. "These payments took the form of a genuine commercial partnership ‌with the Islamic State," said presiding Judge Isabelle Prevost-Desprez. "This method of financing terrorist organizations, and primarily IS, was essential in enabling the terrorist organization to gain control of Syria's natural resources, allowing it to finance terrorist acts within the region and those planned abroad, particularly in Europe." 

 

Deutsche Welle (EN)

France 24

Financial Times

The Guardian

The Trump administration is seeking access to sensitive medical records of millions of federal workers, retirees, and their families. The Office of Personnel Management (OPM) aims to require 65 insurance companies to provide detailed health data, including prescriptions and treatment histories. OPM could use the data to analyze costs and improve the system, said Sharona Hoffman, a health law ethicist at Case Western Reserve University in Ohio. “But,” she said, “they are going to get very, very detailed and granular data about everything that happens. The concern here is the more information they have, they could use it to discipline or target people who are not cooperating politically.”

 

U.S. News

Research suggests long Covid is likely to cost up to $135bn a year across OECD economies over the next decade. Direct healthcare costs combined with the wider effect of people leaving the workforce and lower productivity will have a lasting impact, the global forum said. The OECD found that only six countries have formal pathways for treating the illness. Some people are left unable to work, require changes to their jobs or become less productive.

 

Bloomberg

The Commerce Department has reported that U.S. wholesale inventories rose 0.8% in February, marking the largest monthly increase in 13 months and rebounding from a 0.3% decline in January, driven by gains in professional equipment and a 1.5% surge in electrical goods. On an annual basis, inventories increased 1.8%, and if sustained, could contribute positively to first-quarter GDP growth. Wholesale sales also strengthened, rising 2.7% in February, reducing the inventory-to-sales ratio to 1.22 months from 1.25, indicating improved demand alongside stock rebuilding.

 

Reuters

RTT News

Accountants are increasingly adopting artificial intelligence (AI), drones, and automation, but one of the most unpleasant parts of auditing - physically counting inventory - remains largely manual, requiring auditors to endure harsh, messy, and sometimes dangerous conditions. From climbing grain bins and wading through fertilizer to counting livestock, frozen goods, or construction materials, auditors - often junior staff - must still verify inventory in person due to regulatory requirements and technological limitations. While tools like drones and AI are improving efficiency in some areas, they struggle with obstacles such as indoor environments, hidden items, or extreme conditions, and auditing standards still mandate human verification. As a result, despite hopes that advancing technology will eventually replace these tasks, inventory counting continues to be widely viewed within the profession as the most grueling and outdated aspect of auditing.

 

Wall Street Journal

Peloton Chief Executive Peter Stern has said the company is moving in the right direction as he tries to revive a business whose market value has fallen to a fraction of its pandemic peak. Once worth roughly $50bn during the home-fitness boom, Peloton later saw demand collapse, leaving heavy losses, layoffs and leadership changes. Stern, a former Apple and Ford executive who took the top job this year, is betting on subscriptions, software and member retention.

 

New York Times

The U.S. Environmental Protection Agency is overhauling its $5bn Clean School Bus Program after its inspector general found weak oversight, fraud risks, and poor monitoring of applicant information, spending, and bus deployment. The agency says it has completed or is addressing 11 recommendations, including stricter verification, controlled fund accounts, better eligibility documentation, and stronger financial guidance. With $2.37bn still available, the relaunch will also invite input on biofuels, natural gas, and hydrogen, marking a broader approach beyond the earlier focus on electric buses.

 

K-12 Dive