Financial Risk and Financial Risk Management Technology (Rmt): Issues and Advantages

37 Pages Posted: 31 Oct 2008

See all articles by Arun Bansal

Arun Bansal

affiliation not provided to SSRN

Robert Kauffman

New York University (NYU)

Robert M. Mark

affiliation not provided to SSRN

Edward Peters

affiliation not provided to SSRN

Date Written: August 1992

Abstract

Methods for sound risk management are of increasing interest among Wall Street investment banking andbrokerage firms in the aftermath of the October 1987 crash of the stock market. As the knowledge of advancedtechnology applications in risk management increases, financial firms are finding innovative ways to use thempractically, in order to insulate themselves. The recent development in models, the software and hardware, andthe market data to track risk are all considered advances in Risk Management Technology (RMT). Theseadvances have affected all three stages of risk management: the identification, the measurement, and theformulation of strategies to control financial risk. This article discusses the advances made in five areas ofRMT: communication software, object-oriented programming, parallel processing, neural nets and artificialintelligence. Systems based on any of these areas may be used to add value to the business of a firm. Abusiness value linkage analysis shows how the utility of advanced systems can be measured to justify their costs.

Keywords: Risk management, Object-oriented, Neural nets, Artificial intelligence, Business value, Clientserver, Distributed database, Parallel processing, Pattern recognition, Data quality

Suggested Citation

Bansal, Arun and Kauffman, Robert and Mark, Robert M. and Peters, Edward, Financial Risk and Financial Risk Management Technology (Rmt): Issues and Advantages (August 1992). NYU Working Paper No. IS-92-31, Available at SSRN: https://ssrn.com/abstract=1289015

Arun Bansal

affiliation not provided to SSRN

Robert Kauffman

New York University (NYU)

Bobst Library, E-resource Acquisitions
20 Cooper Square 3rd Floor
New York, NY 10003-711
United States

Robert M. Mark

affiliation not provided to SSRN

Edward Peters

affiliation not provided to SSRN

No Address Available

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