Berkeley teams up with financial industry to apply data tools to financial risk

Economists and statisticians from across the UC Berkeley campus will soon be able to collaborate more easily with financial-industry experts on advanced data-intensive techniques for managing and easing economic and financial risk.

The newly formed Consortium for Data Analytics in Risk will bring together researchers from across UC Berkeley and build on programs of the Center for Risk Management Research, an existing unit studying the dynamics of risk in financial markets, as well as those of the Berkeley Institute for Data Science, a hub for researchers in data-intensive sciences.

Consortium members will also include Stanford University and State Street Bank’s Global Exchange unit, which will become a new core member of the Berkeley Institute for Data Science. UC Berkeley and State Street Global Exchange announced formation of the consortium in an April 15 press release.

“The 2008 financial crisis highlighted the urgent need for better financial risk management tools,” said Robert M. Anderson, director of the center. “We are delighted to partner with State Street Global Exchange and other consortium members, to develop data-driven tools to manage financial risk.”

To better understand the complex interactions driving the global economy, consortium researchers will have access to both public and proprietary data, according to Carla Hesse, executive dean for the College of Letters & Science.

“We are excited to be working with leading data scientists to tackle the immensely complex data challenges facing the institutional financial services industry today,” said Jeff Conway, executive vice president and head of State Street Global Exchange. “Working with UC Berkeley and Stanford in launching this consortium will not only generate immense learning and value for our clients, but for the entire financial industry.”