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

Powerful AI models that are capable of devastating cyber attacks on governments and companies may succeed within months, according to the leaders of intelligence agencies from the Five Eyes nations – Australia, Canada, New Zealand, the US and the UK. A rare joint warning by the alliance said that while AI “would help us improve cyber defence over time, it also accelerates the speed, scale, and sophistication of cyber threats . . . Frontier AI models are anticipated to exceed current industry expectations, fundamentally transforming both offensive and defensive cyber capabilities. The timeline is not years, it is months.” The Five Eyes agencies added: “In this environment, cyber resilience is integral to advancing business continuity, market confidence, and long-term value . . . Cyber risk can no longer be treated as a purely technical issue. This is a core business risk and leadership responsibility.”

 

Financial Times

The Register

The Guardian

Reduce Tool Sprawl Without Losing Control

Fragmented tools, shadow apps and unmanaged workflows can create hidden risk across fast-moving teams. This Atlassian eBook shows how organisations including Reddit, Breville and Lendi Group have consolidated collaboration platforms while keeping governance and security in focus.

Designed for risk, IT and operations leaders, the guide outlines five practical ways to bring scattered teamwork into a more scalable, visible and controlled environment. You’ll learn how unified platforms can help reduce tool sprawl, improve cross-team visibility and support more consistent governance.

It also explores how AI-enabled automation can simplify provisioning, onboarding and workflow management, helping teams move faster without adding unnecessary complexity.

For organisations under pressure to improve collaboration while managing operational risk, this guide offers a practical route from disconnected tools to governed teamwork at scale.

Download the eBook

 

British companies are showing resilience to global challenges, with 57% expecting growth this year, according to the latest Lloyds Business Barometer survey. Over 80% reported successfully navigating the impacts of the US-Iran conflict, which has affected energy prices and consumer confidence. Amanda Murphy, chief executive of Lloyds Business and Commercial Banking, said that firms are taking decisive actions to protect operations, such as increasing inventory and managing costs. Nearly 20% are using interest rate hedging, while 46% have adopted cashflow forecasting to adapt to ongoing uncertainties.

 

The Times

BMW is said to be preparing for talks with staff representatives after the German ​carmaker issued a profit warning last week and said ‌it would accelerate efficiency measures. "We are initially working on viable solutions, through ​dialogue and with a sense of responsibility toward our employees," ​a works council spokesperson said. Reuters notes that unlike Volkswagen and Mercedes-Benz, BMW has not yet announced sweeping redundancy programmes.

 

Reuters

US efforts to open shipping channels in the Strait of Hormuz will allow a gradual increase in vessel transit, but security continues to be volatile, Chubb CEO Evan Greenberg has told Fox News. “It’s from day to day, hour to hour,” Greenberg said, adding: “Mines are the greatest uncertainty” in the strait. “We’re talking more about a war-zone environment,” he said. “Only a narrow channel is really being used to transit, and so it limits the number of ships that can actually go in and out. The Navy has been working to open up a broader set of channels, and as that happens, then shipping will increase.”

 

Bloomberg

EuroCommerce, which represents major retailers including Amazon and H&M, has urged EU technology chief Henna Virkkunen to exempt AI-generated advertisements from the European Union's new AI Act. The legislation, which takes effect on 2 August, requires AI-generated or AI-modified content classified as a "deepfake" to be clearly labelled. In a letter to Virkkunen, EuroCommerce Director General Christel Delberghe argued that advertisements created without any intent to deceive - such as AI-generated product imagery - should not be considered deepfakes. She warned that applying the rules too broadly could force retailers to add labels to a large volume of advertising content, potentially reducing consumers' attention to disclosures intended to flag genuinely misleading material.

 

Reuters

Ticket reselling platform StubHub has been fined £889,200 by the UK's Competition and Markets Authority (CMA) for failing to display total ticket prices upfront. Over 50,000 customers are expected to receive refunds, averaging £10 each. Noting that "hitting customers with hidden fees is illegal," Emma Cochrane, executive director of consumer protection at the CMA, said: It's not fair to draw people in with what looks like a good deal, only for them to find the real price is higher when they get to the checkout due to extra charges that can't be avoided."

 

BBC News

City AM

Daily Mail

Lloyd's has launched a new market consortium with Chubb as lead underwriter, supported by participating Lloyd’s syndicates and specialist partners, to provide additional marine war risk insurance capacity for vessels and cargo transiting the Strait of Hormuz. It will issue primary policies for vessels and cargo and provide up to $200m of capacity separately for hull and P&I risks, plus a further $200m of dedicated cargo capacity.

 

Financial Times

City AM

The United States has opened a trade investigation into Germany’s pharmaceutical pricing policies, arguing that the country’s efforts to limit drug costs amount to the “persistent underpayment” of medicines and unfairly shift research and development costs on to US consumers. The probe, launched under Section 301 of the Trade Act, will examine whether Germany’s drug pricing system discriminates against US pharmaceutical companies and burdens American commerce. US Trade Representative Jamieson Greer criticised Germany’s proposed healthcare reforms, which include measures to reduce public healthcare spending through greater discounts from drugmakers.

 

CNBC

EurActiv

Wall Street Journal

The Court of Justice of the European Union (CJEU) has ruled that Hungary’s mandatory discount programme for large food retailers breached EU law, dealing a setback to government efforts to combat food inflation through direct intervention in retail pricing. The case, brought by Penny Market Hungary, challenged legislation introduced in 2023 that required large retailers to apply compulsory discounts on certain food products and maintain sufficient stock levels. Retailers faced penalties for non-compliance. The court found that the measures interfered with retailers’ ability to determine their own commercial policies and were incompatible with EU rules governing the internal market, including the common organisation of agricultural markets and the freedom to provide services. 

 

EU Today

Leonardo Maria Del Vecchio, the son of late Luxottica founder Leonardo Del Vecchio, has escalated a dispute over control of the family’s investment vehicle, Delfin, by publicly urging its board to support his proposed €10bn acquisition of stakes held by two siblings. In an open letter published ahead of a key shareholder meeting on 30 June 2026, Mr Del Vecchio criticised Delfin’s board for what he described as an inconsistent approach to the transaction, which would see him acquire the combined 25% holdings of siblings Luca and Paola Del Vecchio. If completed, the deal would increase his stake in Delfin to 37.5%, making him the company's largest shareholder. The proposed transaction is designed to simplify ownership of one of Europe’s largest family fortunes and potentially resolve longstanding succession issues following the death of Leonardo Del Vecchio in 2022.

 

Bloomberg

NatWest is offering AI ethics training to all 60,000 employees as it integrates artificial intelligence into its operations. The course, developed in collaboration with the University of Edinburgh, aims to foster a culture of responsible AI use. Paul Dongha, who oversees NatWest's AI strategy, said: "As AI becomes increasingly embedded in how we serve customers and run our bank, it's important that we equip colleagues with the skills and confidence to use it responsibly." He said the course would give employees "even more practical tools to recognise risks, ask the right questions and make better decisions in their day to-day roles".

 

The Times

UN Secretary-General António Guterres has urged AI companies to disclose their environmental impact, including carbon emissions, water, and land usage. Speaking at London Climate Action Week, he proposed the AI Environmental Transparency Initiative, as he highlighted the need for standardised reporting. Mr Guterres noted that data centres, which support AI, accounted for 1.5% of global electricity consumption in 2025. This is projected to rise to nearly 3% by 2030. “By 2030, [data centres] could use ⁠more power than all but five countries – and enough water to meet the basic needs ​of all 1.3bn residents of sub‑Saharan Africa for an entire year,” he said. “If AI is to help build a better ​future, it must be honest about what it costs us now.”

 

Reuters

UK businesses and the government have pushed back on calls to introduce a maximum working temperature, after trade unions launched a “heat strike” ahead of record-breaking weather, the FT reports. The Met Office has issued a red alert for today, while warning that temperatures will build significantly as the week continues, and said there is the possibility of failures of heat-sensitive systems and equipment that could lead to losses of power, water, and transport disruption.

 

Financial Times

The Times

International staffing company Randstad has reported a rise in Dutch workers leaving jobs due to stress and burnout, particularly women and younger employees. The healthcare, education, and engineering sectors are said to be feeling the strain most acutely. “With burnout, you are often at home for as long as half a year,” the company noted in describing the pattern among younger workers. Randstad Netherlands CEO Jeroen Tiel said the broader economic impact is significant. “It erodes the labour productivity that we so urgently need, and it also chokes sectors that are dealing with acute shortages. Work pressure and job satisfaction are also suffering,” he said.

 

NL Times