Central bank warnings on the global economy are getting louder

The reasons to stay awake at night are multiplying – let’s hope this time we have priced the risks correctly

When I took over responsibility for banking supervision in the United Kingdom, in 1995, a wise old bird in the Bank of England (BoE) warned me that I would find it a thankless task. No newspaper ever prints a headline reading “All London Banks Safe and Sound this Week”. But if a problem occurs, it is almost invariably seen as a case of supervisory failure. Dozy watchdogs asleep at the wheel are a trope that trips quickly into journalists’ coverage.

Regulators are caught in a crossfire of conflicting expectations. Banks want to be left alone, unless they need help. Consumers and their political representatives want regulators to be aware of every transaction, ready to intervene in real time if any glitch occurs. In the years running up to the 2008 financial crisis, the pendulum swung toward the non-interventionist end of the spectrum. Today, “intrusive” has a positive connotation in the regulatory lexicon. But the need to strike a sensible balance remains.

Related: GDP is not a good measure of wellbeing – it’s too materialistic | Joseph Stiglitz

1. Extreme weather events

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LeanIX, the SaaS that lets enterprises map out their software architecture, closes $30M Series C

LeanIX, the Software-as-a-Service for “Enterprise Architecture Management,” has closed $30 million in Series C funding.

The round is led by Insight Venture Partners, with participation from previous investors Deutsche Telekom Capital Partners (DTCP), Capnamic Ventures and Iris Capital. It brings LeanIX’s total funding to nearly $40 million since the German company was founded in 2012.

Operating in the enterprise architecture space, previously the domain of a company’s IT team only, LeanIX’s SaaS might well be described as a “Google Maps for IT architectures.”

The software lets enterprises map out all of the legacy software or modern SaaS that the organisation is run on, including creating meta data on things like what business process it is used for or capable of supporting, what tech (and version) powers it, what teams are using or have access to it, who is responsible for it, as well as how the different architecture fits together.

From this vantage point, enterprises can not only keep a better handle on all of the software from different vendors they are buying in, including how that differs or might be better utilised across distributed teams, but also act in a more nimble way in terms of how they adopt new solutions or decommission legacy ones.

In a call with André Christ, co-founder and CEO, he described LeanIX as providing a “single source of truth” for an enterprise’s architecture. He also explained that the SaaS takes a semi-automatic approach to how it maps out that data. A lot of the initial data entry will need to be done manually, but this is designed to be done collaboratively across an organisation and supported by an “easy-to-use UX,” while LeanIX also extracts some data automatically via integrations with ServiceNow (e.g. scanning software on servers) or Signavio (e.g. how IT Systems are used in Business Processes).

More broadly, Christ tells me that the need for a solution like LeanIX is only increasing, as enterprise architecture has shifted away from monolithic vendors and software to the use of a sprawling array of cloud or on-premise software where each typically does one job or business process really well, rather than many.

“With the rising adoption of SaaS, multi-cloud and microservices, an agile management of the Enterprise Architecture is harder to achieve but more important than ever before,” he says. “Any company in any industry using more than a hundred applications is facing this challenge. That’s why the opportunity is huge for LeanIX to define and own this category.”

To that end, LeanIX says the investment will be used to accelerate growth in the U.S. and for continued product innovation. Meanwhile, the company says that in 2018 it achieved several major milestones, including doubling its global customer base, launching operations in Boston and expanding its global headcount with the appointment of several senior-level executives. Enterprises using LeanIX include Adidas, DHL, Merck and Santander, with strategic partnerships with Deloitte, ServiceNow and PwC, among others.

“For businesses today, effective enterprise architecture management is critical for driving digital transformation, and requires robust tools that enable collaboration and agility,” said Teddie Wardi, principal at Insight Venture Partners, in a statement. “LeanIX is a pioneer in the space of next-generation EA tools, achieved staggering growth over the last year, and is the trusted partner for some of today’s largest and most complex organizations. We look forward to supporting its continued growth and success as one of the world’s leading software solutions for the modernization of IT architectures.”

Is China Really More “Dystopian” Than The UK?

Authored by Andrew Korybko via Oriental Review,

RT reported that the UK’s so-called “National Data Analytics Solution” will see an algorithm process whichever of 30 separate data points have been recorded about a person in local and national police databases in order to predict which members of the population are most likely to commit a crime or be victimized by one, after which the state will dispatch local health and social workers to offer “counseling” to them in an attempt to prevent the computer’s envisioned scenario from transpiring.

This program is being likened to the 2002 film “Minority Report” and carries with it a vibe of China’s controversial “social credit” system, albeit without any “rewards” being offered for law-abiding behavior. In fact, one can actually make the claim that instead of the UK copying China to a degree, it was actually China that learned from the UK seeing as how the island nation’s mass surveillance system used to be far ahead of the communist nation’s one.

The problem with “pre-crime” technology, however, is that it straddles the fine line between security and liberty in what is supposed to be a “democracy”, therefore making it uncomfortably out of place in the UK while being much more natural to implement in centrally controlled societies like China’s. While the European country insincerely pretends to be a “democracy” in the Western sense of how this system is commonly assumed to function, the East Asian one makes no such pretenses and is proud of having a different organizational model, which should be doubly disturbing for any British citizen because it means that their “democratically elected government” is actually less forthcoming about its nationwide surveillance strategy than comparatively more centralized China’s is. No value judgement is being made about either country’s governing system, but the purpose of this comparison is to point out the surprising similarities between the two that are usually lost on most observers.

For as much as China is demonized for taking proactive security measures against Uighurs who the state fears are at risk of succumbing to terrorist ideologies, the UK will essentially be channeling the same spirit of this strategy through its “National Data Analytics Solution” with what can only be assumed are the ethno-socio minority groups in the country that are statistically more at risk of committing crimes or being victimized by them.

The difference, however, is that drawing attention to this doesn’t serve the US’ geopolitical interests because it has nothing to gain by destabilizing the UK and possibly imposing sanctions against it for supposedly violating these subjects’ “human rights”, unlike its stance towards China in this respect. While many are fretting that “East Asia” is pioneering the way for Orwell’s 1984 to come to life, they’d do well to consider just how much “Oceania” has already done to make this a reality too.