⚖ Ethics

8 sections from the Description of Action (Part B)

4.2. Compliance with ethical principles and relevant legislations .................................................................... 42

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Project: 101119635 — DIGITAL — HORIZON-MSCA-DN-2022

LIST OF PARTICIPATING ORGANISATIONS

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WWU x x AT Department of Prof. Dr. R.

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Economics Hochreiter

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Business

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Project: 101119635 — DIGITAL — HORIZON-MSCA-DN-2022

Bern Business BFH x CH

Applied Data Prof. Dr. Hosting DCs,

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Science and Joerg Transferable Skills

Finance Osterrieder Training, Research

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Deutsche Bank DBA x DE LGD and CCF Roman Hosting DCs,

Methodologies Timofeev Transferable skills,

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Kaiserslautern- Department of Prof. Dr, Ralf Hosting DCs,

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Cardo Milan, Italy Research on 111 91 www.cardo 2.191.881€ No Yes

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Declarations

Name (institution / individual) Nature of inter-relationship

Jörg Osterrieder Prof. Dr. Osterrieder is Associate Professor at the University of Twente and Professor at Bern

Business School.

1 Defined as the total value of sales of goods and services during the last accounting period.

2 As defined in Commission Recommendation 2003/361/EC.

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Project: 101119635 — DIGITAL — HORIZON-MSCA-DN-2022

4. Secondments, continuous cooperation and feedback loop. Continuous collaboration and feedback loops

with industry and other relevant non-academic partners are a defining characteristic of the DIGITAL research model

(ECB, BIS, ARC and FRA). Each IRP is established jointly by academic and industry representatives, and each DC

will spend 18 months in industry, in world-class research centres and government agencies. With this design,

we ensure that the progress with respect to the established research objectives is continuously monitored, validated

by industry, and in accordance with the existing and upcoming technological regulations. The continuous feedback

loop with industry ensures that developed solutions are applicable in the real world.

4. Other general good practices (WP 8). The supervisory board will be balanced in ethnicity and race, gender,

sexual orientation, and all other relevant diversity aspects; supervisors, candidates, and trainers in training schools

will be chosen to comply with sex and gender integration; and Ph.D. research projects will be evaluated, among other

things, based on the degree to which they integrate sex and gender into research, following EU principles.34 35

4. Reusability. The research outcomes of DIGITAL will be published on GitUBER/Gitlab as open-source

libraries and tools. Proper documentation, licenses, user guides, examples, and evaluation results will be provided so

that a third party can reproduce findings and become familiar with the various frameworks.

4. Able to provide a suitable explanation of its decision-making process whenever an AI-based system can

have a significant impact on people’s lives. This will be accomplished by enabling systems that are explicable,

trustworthy, and ethical (WP 1, 3, 4). Legal accountability, transparency, and fairness are considered from the start of

a project. IRPs will begin with ethical considerations, and regular meetings and audits will ensure compliance

throughout. Each AI pipeline implementation will be exhaustively described upon completion. WP 3 is central to the

development of trustworthy AI systems.

4. Outreach for MSCA researchers and participating institutions

The members will

● Promote awareness of sustainability issues that have arisen as a result of the research project, as well as

awareness of sustainability goals and initiatives in general (such as the European Green Deal and the United

Nations Sustainable Development Goals), including through the activities of the project pertaining to

outreach, communication, and dissemination

● Encourage people to lessen the environmental effect of their research and activities connected to research by

spreading ideas and providing examples of best practices for enhancing the sustainability of research projects.

This may be done via social media and other online platforms.

4.1. Ethical dimension of the objectives, methodology and likely impact

In case of success, the researchers to be recruited by the Swiss university will be fully financed by the Swiss State

Secretariat for Education, Research and Innovation (SERI). The SERI will apply the same rules as the European

Commission, based on the MSCA Work Programme 2021-2022, incl. recruiting, mobility and funding rules. The

present project proposal deals with the issue of Digital Finance. This means that it combines access to data and data

issues with AI aspects. Consequently, the main ethical dimensions that are found in this proposal are related to personal

data and the use of AI. For a successful implementation of the action in order to address the project's objectives, data

needs to be manipulated and analysed. There is the need for data from financial actors like banks, regulators, or other

financial companies. All this data will be processed using two main types of methods: statistical/ econometrics and AI.

Ethical issues related to personal data that can be attached to our objectives are given by the collection of data,

organization and storage, adaptation/ alteration, retrieval and consultation, use, and transferability/ sharing. We will

use both available data related to individuals and financial actors, and data that will be collected through surveys or

interviews. All members of the projects will consult databases with personal data. For survey reasons, mailing lists will

have to be constructed. Additionally, in order to increase the impact of our results we will ask partners and respondents

if they would like to provide their e-mail addresses or other types of personal contacts to be kept up-todate about the

results of our research activities. The topic addressed by the present project proposal does not lead to any harm in the

health or the physical safety of the participants. It may, however, hinder their safety, from the perspective of their

personal data being employed in the research.

The second major ethical dimension that we emphasize for our project is the use of AI. Digital Finance is characterized

nowadays by a substantial amount of data (Big Data). Econometrics tools have to be combined with the use of AI

methods, in order to obtain the most accurate results. AI techniques will be both used and developed to ensure the

objectives' fulfillment. But, just as expressed by the European Commission, there are different ethical aspects that have

to be taken into account. One very important is related to the trustworthiness and robustness of AI. AI models/systems

can generate confusion or affect human autonomy. Additionally, both human and other artificial actors can interact in

an adversarial manner with the developed AI system. Our goal is to fill in the research gap existing in the field of

Digital Finance and Explainable AI. For this, we will also provide strong interdisciplinary training for future European

financial and data researchers in Europe, in order to boost capabilities and create a qualified workforce. Consequently,

ethical dimensions are also to be found in the training programmes.

Another important aspect is that some of the participants in the project proposal come from non-EU countries -

Switzerland. Consequently, additional ethical issues may arise, depending on the national legislation of the beneficiary.

This will all be treated according to the EU ethical guidelines.

4.2. Compliance with ethical principles and relevant legislations

To address the ethical issues mentioned in the Ethics Self-Assessment part, we will first adhere to the highest ethical

standards provided by both national and European regulations in the field. In each particular case (non-EU countries

participants included) the strictest ethical regulation will be applied and all participants will have to implement it.

In respect to the AI ethical issues that we emphasized in the Ethics Self-Assessment, the first step is to use the ALTAI

checklist, as stated before. To counteract the adversarial usage of AI, all applications developed within the project will

be safely kept and used according to international laws. Additionally, we will take care that AI tools that we use or

develop preserve the human decision-making autonomy and that they are only a means to achieve better results such

as to contribute to the fulfillment of the project's objectives, on one hand, and to an increase in the standard of living

of individuals, by increasing financial innovation and financial access. We will involve an advisory board made up of

specialists in the field. For example, in the COST Action CA 19130 that we are involved in, we have Maria Maloney,

from University College Dublin that is a specialist in GDPR, in general and GDPR related to AI, in particular. Another

important issue is related to the robustness of the AI tools and applications developed. To mitigate this risk, all tools

and applications will be tested several times and in comparison to other types of approaches, like, for example,

Econometrics. All activities related to the use of AI will comply with the ALTAI checklist and the 7 major requirements

in this list. Network Organization.

The consortium is confirming that compliance with ethical principles and applicable international, EU and national

law in the implementation of research activities not originally envisaged (or not described in detail) in the DoA will be

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Project: 101119635 — DIGITAL — HORIZON-MSCA-DN-2022

ensured. Any ethical concerns raised by those activities will be handled following rigorously the recommendations

provided in the European Commission Ethics Self-Assessment Guidelines.

The consortium is confirming that an ethics advisor will be appointed and that two ethics reports will be delivered at each

reporting period.

The consortium is confirming that in case of an Ethics Check, relevant documents, authorisations, approvals will be

obtained, kept on file and sent to the REA upon request.

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