Greetings from London. The WSJ CCO Council hosted a summit in London on Wednesday, the latest in its series of global events. Next up, the Dow Jones Risk Journal Summit convenes in London on Thursday.

Some highlights from Wednesday’s event:

• Deepfake peril: Companies will require new forms of digital infrastructure and security systems to counter the rise of artificial intelligence-produced deepfakes as more sophisticated methods of compromising business systems become widespread, AI security experts told WSJ Pro Cybersecurity’s Kim Nash. 
   
• The AI paradox: The expanding use of artificial intelligence in organizations’ compliance departments will require staff to have the judgment and resilience needed to weather the changes, Risk Journal's Richard Vanderford reports.
   
• Boards on notice: Board members facing proliferating risks should expect to have an intimate understanding of the business they oversee, writes Richard Vanderford. 
   
• And more: Check out the Morning Risk Report both on Friday and Monday for coverage of our May 7 Risk Journal Summit, also in London.

JPMorgan offered $1 million settlement before sexual assault claims went viral.

JPMorgan Chase offered $1 million to settle sexual assault and harassment claims brought by a former investment banker weeks before he filed a lawsuit filled with lurid allegations that have captivated Wall Street, people familiar with the matter said.

Chirayu Rana’s lawsuit in New York state court, which was refiled on Monday after being taken down for a week, alleged that a female colleague sexually assaulted him and that co-workers inside the nation’s biggest bank subjected him to racial discrimination.

• PayPal Holdings, Visa and Mastercard are under investigation by U.K. authorities for anticompetitive conduct related to PayPal's digital wallet.
   
• Dish Wireless will pay $17.3 million to resolve allegations by the Justice Department that the company wrongly received federal funds from two Federal Communications Commission programs.
   
• The European Union is set to roll out long-awaited regulation this year to reduce deforestation across the globe. But a new trade deal with South American countries could test how well that works in practice.
   
• Elon Musk’s romantic partner Shivon Zilis took the stand in court on Wednesday for questioning on whether she “funneled” information to Musk while sitting on the board of OpenAI.
   
• The Trump administration initially revoked Biden-era AI regulations, but is now reportedly considering increased oversight, including a potential executive order.
   
• Risk Journal reports: The U.S. Treasury’s Office of Foreign Assets Control has authorized American lawyers, bankers and consultants to begin advising the Venezuelan government on restructuring its multibillion-dollar sovereign debt, according to a general license issued Tuesday. (free link) 

• “When somebody joins a company in a compliance function, usually the first thing they ask for is, ‘Where's the code of conduct?’… We've tried to recently flip that and say, ‘Don't worry about the policy. Don't worry about the colleagues you're going to be working with day to day, and really get to know the business.’”
  –Keith Huffman, chief legal counsel, export control and innovation head, SAP
   
• “Compliance is an inherently leadership-focused field, because you have to stand up and say the right thing and ask people for sometimes hard change.”
  –Chris Nelson, vice president and deputy general counsel, Microsoft.
   
• “We're using AI to govern AI.”
  –Indrani Franchini, chief compliance officer, IBM
   
• “Fraud is like water, it will find where the weak point is in your system.”
  –Simon Horswell, fraud specialist senior manager, Entrust
   
• “I always think about resilience as having this culture of active pessimism.”
  –Elaine Bucknor, board director, Hoptroff

Gulf states fear an emboldened Iran is taking advantage of a hesitant U.S.

President Trump chose to look the other way after Iran launched three salvos of missiles and drones into the United Arab Emirates, one of America’s main Middle Eastern partners, despite a cease-fire he negotiated nearly a month ago.

The likely conclusion in Tehran, Gulf governments fear, is that further escalation pays off because Trump is so intent on extricating himself from the war that he will ignore renewed Iranian attacks on America’s regional allies. European and Asian nations—allies and strategic adversaries alike—are watching this closely, too.

• Iran, U.S. Working on Talks to End Fighting
• China Is Playing Iran Peacemaker in Advance of Summit With U.S. Here’s Why.
• The Iran War Is Crushing Whirlpool’s Profits—and Higher Prices Are Coming
• Jet-Fuel Prices Are Spiking and Trump’s Advisers Are Worried

• The U.S. is struggling to stop Chinese companies from openly selling dual-use goods, like drone engines, to adversaries such as Iran and Russia.
   
• Washington and Beijing are weighing the launch of official discussions about artificial intelligence, said people familiar with the matter, as their AI competition threatens to become the arms race of the digital era.
   
• President Trump’s threat to raise tariffs on European cars is a warning for investors and U.S. trading partners that the Iran war hasn’t dissuaded him from his trade agenda or his willingness to strong-arm allies through economic pressure.
   
• China demanded the U.S. immediately halt its sanctions and blockade against Cuba, Risk Journal reports, after President Trump signed an executive order tightening decades-old restrictions on the island. (free link)
   
• Days after Russian President Vladimir Putin discussed a temporary cease-fire in Ukraine in a phone call with President Trump, Russian forces launched one of the deadliest aerial attacks of the year, killing at least 27 people and injuring more than 70 others.
   
• Coinbase is cutting 14% of its workforce, and PayPal plans to cut 20% of staff, citing artificial intelligence adoption. But other companies like Axon Enterprise and Spotify are keeping head counts intact, viewing artificial intelligence as a tool to enhance productivity.
   
• Economic discontent often leads to ruling parties being unseated. But in India, that sentiment is working in favor of Prime Minister Narendra Modi and his ruling party—for now.

• Iran and the U.S. are working with mediators on a one-page framework to restart negotiations aimed at ending the conflict and opening the Strait of Hormuz, with talks potentially beginning next week in Islamabad.
   
• Commerce Secretary Howard Lutnick told a congressional panel he was on a family vacation in the Caribbean and was surprised when he received an invitation to visit Jeffrey Epstein’s private island in 2012, saying he didn’t know how Epstein’s assistants knew he was in the area and found it unsettling.
   
• The opaque private-lending deals that left HSBC with a $400 million hole.
   
• As the regional coordinator for the International Transport Workers’ Federation, Mohamed Arrachedi is one of the few people to whom sailors stranded since the closure of the Strait of Hormuz can turn for help.
   
• The Green Spot, in Santa Cruz, Calif., has accomplished something that is getting rarer and rarer these days: It is a cannabis dispensary. And it is making money.

Follow us on X at @WSJRisk. Send tips to our reporters Max Fillion at max.fillion@dowjones.com and Richard Vanderford at richard.vanderford@wsj.com.

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