Big Data, Big Brother, and Systemic Risk Management in the Financial System (LIDS-SSRC Seminar)

Tuesday, May 5, 2015 - 4:00pm to Wednesday, May 6, 2015 - 3:55pm

Event Calendar Category

LIDS Seminar Series

Speaker Name

Andrew Lo



Building and Room Number



A recurring theme among the many narratives of the financial crisis of 2008 is the complexity of the financial system and the failure of private- and public-sector policies to anticipate and attenuate the crisis. This failure may be a symptom of the emergence of a new type of risk to the financial system—systemic risk—and the growing mismatch between rapidly evolving financial technologies and increasingly antiquated regulations that were never designed to address these challenges. However, technology can also be used to improve regulation. In this talk, Prof. Andrew Lo will provide several examples of the potential for big data analytics to transform financial regulation, including self-stabilizing capital requirements, machine-learning models for consumer credit risk management, aggregate risk measures that guarantee individual privacy, and the application of software engineering principles to the design and implementation of financial rules and regulations.


Andrew Lo is the Charles E. and Susan T. Harris Professor, a professor of finance, and the director of the Laboratory for Financial Engineering at the MIT Sloan School of Management. Prior to MIT Sloan, he taught at the University of Pennsylvania Wharton School as the W.P. Carey Assistant Professor of Finance from 1984 to 1987. He holds a BA in economics from Yale University as well as an AM and a PhD in economics from Harvard University.