Research

Research & Development

CheckRisk runs a continuous research and development program focused on risk. Our work is assisted by our academic partnerships and is based in both quantitative and behavioural finance as well as network model analysis. Whether it is trying to find a new and more accurate way to understand systemic risk, model interest rates or understand how sentiment and the perception of risk affects asset prices, there is always more to explore. The advent of big data is allowing CheckRisk to model with greater accuracy.

Academic Links

CheckRisk works closely with the Universities of Bristol and Bath. The University of Bath was voted third in the Times University Guide 2012/13, and the School of Management was voted first in the same guide.

CheckRisk has linked with the Universities to develop new financial risk modelling systems through the sponsorship of an Engineering Doctorate programme in conjunction with EPSRC.

Our research interests tend to be split in to two camps: quantitative finance and behavioural finance. In both however, our main interest lies in developing a new understanding of risk by using non-linear maths, computational finance and complex networks. We believe that the cross-fertilisation between macro-economics, finance, psychology and risk management can yield new insights and create a more integrated understanding than has been to date.

This challenges the traditional approach to modelling risk – which is based on the assumption that investors are fully rational and emotionless. Existing models do not consider the interplay between economic, behavioural and emotional factors.

Dr Andreas Krause, Assistant Professor of Economics and Quantitative Finance said of the collaboration “Risk has long played a minor role amongst practitioners, and academics have mostly been concerned with retrospective risk measurement. This project promises to push the boundary firmly forward in understanding what drives risk in financial markets”.

Andreas is one of the leading academics in the field of systemic risk, particularly in using complex networks or agent-based economic modelling to understand financial contagion in the banking system.

CheckRisk is fortunate that we have direct access to the expertise of academic specialists and also post graduates at the universities to assist us with our projects and ongoing research