Nature offers insight into bank operational risks

 

Read how biological evolution is parallel to operational risk in Australian banks. Published yesterday in the Actuaries, John Evans’ article explains the commonalities between the biological evolution and financial institutions. Click here to read the article online.

 

Neil Allan and the Bristol University Systems Centre have created a PhD program which explores the field of Phylogenetics and its application to capital markets. Inspired by Neil Allan and Josh Corrigan’s paper “Emerging Risk Assessment” for the Actuarial Institute, three PhD students are currently researching the application of evolutionary analysis to operational risk, credit risk and market risk. Their techniques are similar to the technique which our ERA (Evolutionary Risk Analysis) tool is following, and results of their studies will be presented to the Institute of Acturaries next month.

 

Our ERA tool adopts a systemic approach and analyses characteristics of risks to determine the families of evolved risks and predict where in the system new risks are likely to emerge.

 

For more information on the tool, please contact us here.