State Street, UC Berkeley and Stanford University Form Consortium for Data Analytics in Risk
April 15 2015 - 11:00AM
Business Wire
New Research Initiative Will Explore How Cutting-Edge Data
Science Can Help Manage and Mitigate Financial and Economic
Risk
The University of California, Berkeley (UC Berkeley) and State
Street Global Exchange today announced a collaboration to establish
the Consortium for Data Analytics in Risk (CDAR), a new research
center focused on applying advanced data-science techniques to
manage and mitigate economic and financial risk. The announcement
comes as State Street opens GX Lab, its new presence in Silicon
Valley focused on partnering with local talent, industry leaders,
and academic institutions to create solutions for its clients in
the fields of data science and risk management.
CDAR will bring together researchers from across UC
Berkeley and build upon the programs of the Center for Risk
Management Research (CRMR), an existing unit dedicated to
understanding the dynamics of risk in financial markets. The work
of the consortium will be tied to the mission of CRMR to address
the most important and pressing issues in risk and portfolio
management – a goal closely aligned with State Street’s commitment
to helping solve its clients’ pressing challenges.
An additional founding member of the consortium is Stanford
University’s Center for Financial and Risk Analytics, which
pioneers models, algorithms and numerical tools to address
questions related to financial markets. A fourth founding member
from within the technology industry will be named later this
year.
“We are excited to be working with leading data scientists to
tackle the immensely complex data challenges that face our clients
and the institutional financial services industry today,” said
Jessica Donohue, executive vice president and chief innovation
officer, State Street Global Exchange. “CDAR has significant
potential to forge new pathways in the fields of data science and
risk management and improve insights that can be actionable for our
clients.”
As part of the collaboration, CDAR will organize and sponsor
conferences, workshops and research related to data and analytics
with industry and academic experts in fields such as statistics,
economics, finance, mathematics, electrical engineering, computer
science and industrial engineering and operations.
“We are honored that State Street has chosen UC Berkeley to
oversee this vitally important research initiative,” says Carla
Hesse, executive dean for the College of Letters & Science.
“This consortium will provide our researchers with a unique
opportunity to work with and learn from State Street, and to apply
leading-edge analysis tools to both public and proprietary data to
better understand the complex interactions that drive the global
economy. CDAR has the potential to become a formidable brain trust
for merging data science with risk measurement and management.”
State Street will draw upon the expertise of data scientists
from across disciplines through its new membership in the Berkeley
Institute for Data Science (BIDS), which was established in 2013 to
explore how data science can address important questions about
highly complex topics, such as the nature of the universe, climate
and biodiversity, seismology, neuroscience, human behavior and
other areas. BIDS is led by Saul Perlmutter, a Nobel Prize-winning
physicist, and brings together domain experts from the life,
social, and physical sciences and methodological experts from
computer science, statistics, and applied mathematics to address
major challenges related to data-centric research.
“The financial crisis highlighted the urgent need for better
financial risk management tools,” says Robert M. Anderson, director
of the CRMR. “We are delighted to partner with State Street Global
Exchange to develop data-driven tools to manage financial risk.”
Lisa R. Goldberg, CRMR’s research director, commented that “There
is tremendous power in a partnership between industry and academia.
Together, they can achieve much more than either can do alone.”
According to a recent survey commissioned by State Street of
more than 400 senior executives at investment organizations,
integrating data scientists and their insight into existing
operations is the number one priority, with fifty percent of
respondents intending to prioritize investment in the quality and
availability of data talent over the next three years.
About the University of California, Berkeley: UC Berkeley
is consistently recognized by U.S. News and World Report as the
top-ranked public university in the United States; in 2014, it
ranked as the #3 top global university. Berkeley has 130 academic
departments and programs and has more than 27,000 undergraduate
students, 10,455 graduate students, and 1620 full-time faculty. UC
Berkeley is widely considered a global leader in data science and
is renowned center for research in finance and economics, with
faculty earning five Nobel Prizes in economics since 1983. To learn
more, see www.berkeley.edu.
About State Street Corporation:State Street Corporation
(NYSE: STT) is one of the world's leading provider of financial
services to institutional investors including investment servicing,
investment management and investment research and trading. With
$28.19 trillion in assets under custody and administration and
$2.45 trillion* in assets under management as of December 31, 2014,
State Street operates in more than 100 geographic markets
worldwide, including the US, Canada, Europe, the Middle East and
Asia. For more information, visit State Street’s web site at
www.statestreet.com.
*Assets under management include the assets of the SPDR® Gold
ETF (approximately $27.3 billion as of December 31, 2014), for
which State Street Global Markets, LLC, an affiliate of SSgA,
serves as the distribution agent.
CORP-1389
State Street CorporationAnne McNally, +1
617-664-8576aemcnally@statestreet.com
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