Systemic risk research consortium launched to address risk in the financial markets

Boston--(business wire)--moody’s and state street global markets have joined with andrew lo, charles t. and susan e. harris professor at the mit sloan school of management and director of mit's laboratory for financial engineering today to announce the formation of a consortium to provide independent, quantitative research, insight, and leadership on systemic risk in the global financial markets. today’s financial markets continue to be affected by the significant market volatility that began in 2008, due mostly to a small number of macroeconomic factors and increasingly interconnected markets, which exposes investors to increased risk. the consortium will seek to foster collaboration between academic and industry research communities to research the interrelatedness of markets and potential sources of systemic risk. the consortium has attracted interest from an array of academic, industry and regulatory researchers and two conferences have been held at which institutional investors, academics and industry experts presented new research and discussed how to better quantify drivers of systemic risk. a third conference is planned for later this year. “understanding the interconnectedness of markets has become an increasingly critical topic for investors and academics alike,” said andrew lo, founding member of the consortium’s academic advisory board. “my collaboration with the consortium members will provide additional resources from various areas of expertise aimed at developing new approaches that institutional investors require to better manage risk.” "global markets continue to become increasingly interconnected, which carries both benefits and risks," said roger m. stein, managing director for research and academic relations globally at moody’s and president of the consortium. "the consortium, with its broad cross section of researchers and its multidisciplinary focus provides a unique forum at the crossroads of academia and financial services for developing new methods to provide greater transparency into the nature of systemic risk." “the market fluctuations of the last several years have led to increased concern among our institutional client base in the measurement and analysis of risk,” said jessica donohue, senior managing director at state street global markets and the consortium for systemic risk analytics (csra) founding board member. “this consortium will help bring quantitative research insights and risk management tools to an even broader academic audience with the goal of creating a collective forum to examine this complex and important issue.” about moody’s corporation moody's is an essential component of the global capital markets, providing credit ratings, research, tools and analysis that contribute to transparent and integrated financial markets. moody's corporation (nyse: mco) is the parent company of moody's investors service, which provides credit ratings and research covering debt instruments and securities, and moody's analytics, which offers leading-edge software, advisory services and research for credit and economic analysis and financial risk management. the corporation, which reported revenue of $2.3 billion in 2011, employs approximately 6,400 people worldwide and maintains a presence in 28 countries. further information is available at www.moodys.com. about state street corporation state street corporation (nyse: stt) is one of the world's leading providers of financial services to institutional investors including investment servicing, investment management and investment research and trading. with $22.4 trillion in assets under custody and administration and $1.9 trillion* in assets under management at june 30, 2012, state street operates in 29 countries and more than 100 geographic markets. for more information, visit state street’s web site at www.statestreet.com. *this aum includes the assets of the spdr gold trust (approx. $65.7 billion as of june 30, 2012), for which state street global markets, llc, an affiliate of state street global advisors, serves as the marketing agent. corp-0551
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