The Future of Humanity Institute is pleased to announce the establishment of the FHI-Amlin Research Collaboration on Systemic Risk of Modelling.
Systemic risks concern the stability of an entire market, and are of great importance to managing large-scale risk. The very methods used to model these phenomena can themselves be a source of systemic risk, especially when they embody hidden assumptions that may not remain reliable in a fast-changing world. Risks that emerge from complex decision-making will be a main focus.
“Insurance and reinsurance is about helping people continue with their lives or businesses, safe in the knowledge their risks are being held and managed. Amlin has some of the industry’s leading experts specialising in commercial risks; people who make highly complex risk decisions on a daily basis,” says Simon Beale, Chief Underwriting Officer at Amlin Plc.
“We believe our industry will benefit significantly from a better understanding of systemic risk, particularly as it applies to decision-making and risk modelling. We are therefore delighted to partner with FHI in this endeavour and look forward to sharing the emerging insights and knowledge across our industry.”
This three-year project will fund three full-time researchers and a project leader to focus on this research, under the direction of the FHI’s Professor Nick Bostrom.
“This Collaboration affords us an opportunity to bridge the gap between academic research and real-world financial risk and resilience modelling” says Bostrom.
The Collaboration will draw on and complement world-leading research on Risk and Resilience being undertaken by the Oxford Martin School.
“There is an urgent need to develop better ways of tackling systemic risks”says Professor Ian Goldin, Director of the Oxford Martin School.
“This work is of great importance and relevance to business and policy makers. It will extend the leadership of the Oxford Martin School in understanding and mitigating new forms of risk.”
For further information, please contact the Future of Humanity Institute.