Basel II defines operational risk as the risk of direct or indirect loss resulting from inadequate or failed internal processes people or systems or from external events abstracting from market risk and reputational risk. The challenge is to develop quantitative measures of operational risk exposure in an institutional hedge fund asset management context where there may be only limited transparency. This is particularly the case for hedge funds. NYU Stern Professor Stephen Brown argues that managing this risk through operational due diligence is actually a source of alpha in this funds management context.
Risk at Stern: V-Lab
The Stern Volatility Institute (V-Lab) provides real time measurement, modeling and forecasting of financial volatility, correlations and risk for a wide spectrum of assets.
Realize a Return on Risk
Learn more about the NYU Stern MS in Risk Management Program for Executives today!