Barclays improves risk management capabilities
Written by Chris Lemmon
Barclays has signed a licence agreement with simulation firm Simudyne to explore ways to manage risk in a simulated virtual environment.
The simulations that the bank has been building replicate real-life complex networks, such as financial markets, by examining how the interactions of large individual agents may drive broader behaviour. By analysing the results of the simulation, Barclays hopes to achieve smarter business decisions in the future.
Simudyne is also helping Barclays to understand the broader opportunities of simulation by hosting a series of hands-on workshops and seminars delivered by industry experts, academics and Simudyne staff. This work will form the basis of a computational simulation ‘Centre of Excellence’ inside the bank.
This is the latest in a series of partnerships that Barclays has announced with FinTech companies, following the establishment of its Accelerator programme, which Simudyne took part in last year.
“We are delighted to be using Simudyne’s toolkit as part of our ongoing efforts to improve the ways in which Barclays identifies and manages risk,” said CS Venkatakrishnan, group chief risk officer at Barclays.
“By building agent-based models we hope to spot and prepare for risks arising from dynamic and large, direct and contingent, counter-party exposures. This helps create a more robust and stable bank for our customers, clients and shareholders.”