0263 - Learning from the London Whale with Denis McCarthy

Welcome to the Economics and Finance class.Our hosts are Daksh Wadhwa and Peter Barrett. Today, we are very pleased to welcome Denis McCarthy, Head of Financial Risk Model Development at AIB.Thank you for coming in to speak to us today. Can you tell us a little about yourself and your journey into financial risk modelling?·       What does a day in the week look like on your team? [for a finance/economist, quant analyst, programmer]·       How can a large organisation manage end-user tools like Excel? [policy, practices, systems management…]·       Much of the focus is on the technical characteristics and the actions of individuals but not so much on organisational cultural. How can we address the organisational culture angle? [for example, grow and protect a culture of dissent? What might that look like?]·       What about review processes and how to avoid undue influence from one or other actors? [maybe relate to audit trails, version control]·       Are our models becoming too complex? [to either understand fully or to apply in a timely manner? What kinds of new systemic risk do you think about?]·       Is sentiment analysis applied much to risk measurement? [how to do it? gotchas and the dark art of automated textual analysis for gauging sentiment from company filings, conference call transcripts and other bulk sources]Questions from the audience?Before we finish, is there anything further you'd like to add?Thank you so much for your time and for sharing your thoughts with us today. Further reading: Articles, links etc.LinkedIn - https://www.linkedin.com/in/denis-mccarthy-69970b2b/  AcknowledgementsMusic Title: Voltaic FluctuationsArtist: Ben PruntySource:  https://www.benpruntymusic.com/License: Non-transferable license. Permission granted by Ben Prunty Cover Art Title: Complex collageArtist: Allen HigginsSource: vignette_version.pptxLicense: CC BY-NC-SA 4.0 Podcast LicenseDesign Talk (dot IE) CC BY-NC-SA 4.0 The license can be viewed at https://creativecommons.org/licenses/by-nc-sa/4.0By taking part, you give permission for your voice to be recorded, for the recording to be edited, and for it to be posted and published as a podcast. Hosted on Acast. See acast.com/privacy for more information.