Wall Street Meets FinTech: Interactive Visualization of Simulations of Systemic Financial Market Risk Conditional on Policy Interventions was the subject of a recent demo at Columbia University’s Data Science Day where Quaternion Risk Management (QRM) announced a new research partnership with the faculty of Columbia University in New York. The event was designed to foster collaboration between innovators in academia and industry through demos and lightning talks by Columbia University researchers presenting their latest work in data science. “This partnership launches the inaugural collaboration within the ‘Financial Risk Analytics and Regulation Innovation Lab’ at Columbia’s School of Professional Studies,” says Sharyn O’Halloran (George Blumenthal Professor of Political Economics and Professor of International and Public Affairs).
The Financial Risk Analytics and Regulation Lab is a collaboration between QRM, Columbia’s School of Professional Studies and esteemed faculty members including: Sharyn O’Halloran, David Park (Dean of Strategic Initiatives for the Arts and Sciences), and Matthew Weber (Zoomdata, Associate at Columbia University). “The research objectives will include a wide range of topical issues related to open source risk applications, with particular interest in understanding the impact of regulation and how forms of policy intervention have systemic linkages within the financial system,” continues Sharyn O’Halloran. The Financial Risk Analytics and Regulation Lab will bring large-scale open source risk models to the public domain. “This will help enable a standards-based approach that facilitates research and a greater understanding of the impact that policy decisions have on the global financial system,” says Donal Gallagher (Managing Director of Quaternion Risk Management).
For the demo, Quaternion’s open source risk engine was used to better understand the output of large-scale Monte Carlo risk simulations via innovative, interactive visualizations presented by ZoomData. “This visual model has the potential to increase comprehension of portfolio risk characteristics and capital requirements by executives and at the same time empower a broader set of stakeholders, who may not otherwise understand the inherent risks presented by the complexity and scale of the numbers alone,” continues Donal Gallagher.
The next project will examine global regulatory arbitrage for OTC derivatives via machine-reading of financial contracts and joint risk and capital simulations run through Quaternion’s open source risk engine.
About Columbia’s School of Professional Studies
Columbia’s School of Professional Studies (‘SPS’) is one of the premier destinations in the world for innovative professional education. SPS currently offers fourteen master’s degrees, a comprehensive portfolio of pre-collegiate, post-baccalaureate, and professional programs. By offering market-leading degree programs across disciplines, such as, Actuarial Science, Applied Analytics, Bioethics, Sports Management, and Sustainability Management, the School is uniquely positioned to meet the diverse professional education needs of top recent graduates, successful mid-career professionals, and accomplished executives.