Dr. Yogesh Malhotra: The Model Risk Management Research Program
Risk Management Analytics beyond 'Prediction' to 'Anticipation of Risk'™

CIO Magazine      Fortune Magazine      Inc. Magazine

Frank Knight in Risk, Uncertainty & Profit

'"It is this true uncertainty, and not risk, as has been argued, which forms the basis of a valid theory of profit and accounts for the divergence between actual and theoretical competition... It is a world of change in which we live, and a world of uncertainty...If we are to understand the workings of the economic system we must examine the meaning and significance of uncertainty; and to this end some inquiry into the nature and function of knowledge itself is necessary."


 

Princeton University MIT Sloan School of Management Artificial Intelligence (AI) & Machine Learning Management and LeadershipExecutive Education MIT Computer Science & ArtificialIntelligence Laboratory CSAIL Artificial Intelligence (AI) & Machine Learning Management and LeadershipExecutive Education
'Knight Reconsidered':
Risk, Uncertainty, & Profit
for the Cyber Era


CIO Magazine      Risk, Uncertainty, and Profit: Frank Knight

     

“The new business model of the Information Age, however, is marked by fundamental, not incremental, change. Businesses can't plan long-term; instead, they must shift to a more flexible "anticipation-of-surprise" model.”
-- Yogesh Malhotra, CIO Magazine, 1999.
[Decade later, Wall Street CFOs know so.]

 

  * 20 Years: Model Risk Management Program
"The future is moving so quickly that you can’t anticipate it… We have put a tremendous emphasis on quick response instead of planning. We will continue to be surprised, but we won't be surprised that we are surprised. We will anticipate the surprise."

Yogesh Malhotra says his vision is to fill the gaps between business and technology, data and knowledge, and, theory and practice...” -- in Fortune Interview, June 1998.


"KM is obsoleting what you know before others obsolete it and profit by creating the challenges and opportunities others haven't even thought about” - Dr. Yogesh Malhotra, in Inc. Technology Interview, 1999"
- U.S. Office of the Under Secretary of Defense (Comptroller) &
Defense Information Systems Agency (DISA)
.

 

Princeton Quant & FinTech Presentations
MIT AI-Machine Learning Executive Guide

2016 Princeton Quant Trading Conference    /MITSloan&CSAILAIMachineLearningExecutiveGuide

 

2018 Princeton FinTech & Quant Conference   2016 Princeton Quant Trading Conference

2016 New York State CyberSecurity Conference 2015 Princeton Quant Trading Conference

 

Download Research: The Model Risk Management Research Program (1993-Current):
Artificial Intelligence, Algorithms, Machine Learning, Deep Learning:
Risk Management Analytics beyond 'Prediction' to 'Anticipation of Risk'™


Model Risk Management program that anticipated needs of OCC and Wall Street CROs to “anticipate risk” over a decade before they said we must anticipate risk: with research advancing execution of Model Risk Management (see, e.g., US Fed & OCC SR11-7 & OCC2011-12) such as 'anticipation of risks' by 'effective challenge of models'.


63 SSRN Top-10 Research Rankings: Top-3 % SSRN Authors:
Artificial Intelligence, Algorithms, Machine Learning, Deep Learning:
Recent Research Papers, Expert Papers, Keynotes, and Presentations
.
Capital Markets, Computational Techniques, Corporate Governance, Cyberlaw, Decision-Making under Risk & Uncertainty, Econometric & Statistical Methods, Econometric Modeling, Econometrics, Hedging & Derivatives, Information Systems & Economics, Mathematical Methods & Programming, Microeconomics, Operations Research, Risk Management, Risk Management Controls, Risk Modeling, Stochastic Models, Systemic Risk, Uncertainty & Risk Modeling, and, VaR Value-at-Risk.

2017-2018 MIT AI-Machine Learning Executive Guide including RPA:
Crypto-Quantum-FinTech: Machine Learning-Internet of Things:
Cyber-Finance-Trust: Offensive Cybersecurity and Model Risk Arbitrage

2018Princeton FinTech & Quant Conference, 2018, April 21 .

2018 Princeton Quant Trading Conference: Post-FinTech Model Risk Arbitrage :
Crypto-Quantum-FinTech: Machine Learning-Internet of Things:
Cyber-Finance-Trust: Offensive Cybersecurity and Model Risk Arbitrage

2018Princeton FinTech & Quant Conference, 2018, April 21 .
Sponsored by Princeton University, SIG.

2016 Princeton Quant Trading Conference: Post-FinTech Model Risk Arbitrage :
Crypto-Quantum-FinTech: Machine Learning-Internet of Things:
Cyber-Finance-Trust: Offensive Cybersecurity and Model Risk Arbitrage

2016 Princeton Quant Trading Conference, 2016, April 16 .
Sponsored by Princeton University, Goldman Sachs, Citadel.

2015 Princeton Quant Trading Conference: Post-HFT Model Risk Management:
Cyber-Quantum-FinTech: Machine Learning, Bayesian Inference, Quantum Crypto
Cyber-Finance-Trust: Defensive Cybersecurity and Model Risk Management
2015 Princeton Quant Trading Conference, 2015, April 04.
Sponsored by Princeton University Bendheim Center & ORFE, Citadel, KCG.

Model Risk Management and Model Risk Arbitrage for Quantitative Finance & Cyber Risk Insurance:
- Risk, Uncertainty, and, Profit for the Cyber Era: 'Knight Reconsidered' and 'Knight Reconsidered Again'
Post-2008 & Post-Cyber Quantitative Finance Model Risk Management Post Doc Research, 2015-2016.

‘Bayesian vs. VaR’ to Model Risk Management for Multi-Asset Portfolios
Advanced Practice beyond MIT Sloan Management Review's Post-Crisis 'MRM Dilemma', 2014 Dec.

Markov Chain Monte Carlo Models for High-Dimension Stochastics
Advanced Statistical Computing Algorithms for Model Risk Management of Systemic Risks, 2014 May.

Cybersecurity & Cyber-Finance Risk Management: Understanding Vulnerabilities, Threats, & Risk Mitigation
CSO-CxO Plenary Keynote, National Cybersecurity Summit, Virginia, 2015 Sep.

Bridging Networks, Systems, and, Controls Frameworks for Cybersecurity Standards Development 
New York Cyber Security and Engineering Technology Association (NYSETA) Conference, 2015 Oct.

Quantitative Modeling of Trust Protocols for Mobile Wireless Networks
Quantitative Models of Trust Frameworks for Mobile Wi-Fi Social Networks, 2014 Dec.

Penetration Testing Frameworks for Stress Testing Banking VoIP Networks
Stress Testing Frameworks for Emerging Quantitative Finance Cyber Risk Concerns, 2014 May.

Hong Kong Institute of CPAs Interview on the Future of Bitcoin
Preceded Multiple Predicted Global Regulatory Developments on Bitcoin, 2014 Jan.

Bitcoin Protocol, ‘Cryptographic Proof’, &, Transaction Block Chain
First Technical Research Report on Bitcoin's Cryptographic ‘Proof of Work’, 2013 Dec.

Number Field Sieve Cryptanalysis Algorithms for Breaking Encryption
Preceded Google's Public Announcement of Switch from 1024- to 2048-bit RSA, 2013 May.

JP Morgan Multi-Asset Portfolio Liquidity Assessment Framework
Presentation to JP Morgan Senior Leaders, Managing Directors, Portfolio Managers, 2012 Jun .

Measuring Financial Risks with Improved Alternatives Beyond VaR
Preceded Risk Magazine Report about Basel Moving Beyond VaR, 2012 Jan.

AACSB Reports Impact of Research on Model Risk Management Practices
AACSB International, 2008 Feb.

Structural Equation Models of Digital Consumer Behavior
JMIS, Ranked among Top-2 Peer Reviewed Academic Research Journals, 2008.

Interview: World's Leading Management Thinkers on Corporate Strategy
Business Standard (India), 2007 Jan.

Systems & Decision Models for Black Swans in Wicked Environments
Computer Society of India Communications: Invited Reprint of 1997 ACIS Article, 2006 Jul.

UK Management Press: IT & Knowledge Management Pioneer Interview
Emerald Group Publishing, UK Management Publisher, 2005.

Designing Real Time Enterprise Decision Models & Business Processes
Journal of Knowledge Management, 2005 Apr .

Multivariate Regression Models of Digital Consumer Behaviors
JMIS, Ranked among Top-2 Peer Reviewed Academic Research Journals, 2005.

Why Knowledge Management Systems Fail? Why Models Fail?
American Society for Information Science and Technology, 2004.

Modeling ‘Human Factors’ Seen in Model Risk Management Guidance
Communications of the ACM, Association for Computing Machinery (ACM), 2004.

PCA Models of Consumer Behavior for CRM Process Automation
Americas Conference In Information Systems, 2004 Aug .

CIO Insight Interview: Next Gen Enterprise Risk Management Systems
CIO Insight, 2004 Jul.

‘Effective Challenge of Models’, ‘Professional Skepticism’ & ‘Human Factor’
CIO Insight: The Original Interview Focused on Model Risk Management, 2004 Jul.

United Nations Global Economists Expert Panel Modeling Expert Paper
United Nations, 2003 Sep.

United Nations Global Economists Expert Panel Modeling Expert Keynote
United Nations, 2003 Sep.

Europe Interview: Systems and Models for Black Swans & Extreme Events
Business Management Europe, 2003 Sep.

Asia Interview: Systems and Models for Black Swans & Extreme Events
Business Management Europe, 2003 Sep.

Regression Models of Motivation & Commitment in Knowledge Work
IEEE, 2003 Jan.

Designing Digital Exchanges, Social Networks, & Electronic Communities
Information Strategy: The Executive's Journal, 2002.

Designing Systems for the Digital World of Black Swans & Extreme Events
United Nations - UNESCO Encyclopedia of Life Support Systems (EOLSS), 2002.

When Best [Practices] Becomes Worst: On Managing Model Risk
Momentum: The Quality Magazine of Australasia [Quality Society of Australasia], 2002 Sep.

Risk Management and Controls for Emerging Business Environments
Knowledge Management, 2001 Jul.

Intel Expert Paper: Enabling Next Generation Digital ERM Architectures
Intel Corporation, 2001 Jul.

Machine Learning vs. Human Factor for “Effective Challenge of Models”
Expert Systems with Applications Journal, 2001 Jan.: Top Ranked Research Paper

Risk Management and Controls for Digital Business Model Innovation
Knowledge Management and Business Model Innovation, 2001.

BOOK: Knowledge Management and Business Model Innovation
Genesis of Knowledge Management for Business Model Innovation, 2000.

Modeling & Measuring Digital Assets & Capital for Knowledge Economies
Journal of Global Information Management, 2000 Sep.

Designing Digital Enterprises with Insourcing, Outsourcing, Self-Sourcing
Information and Management, 2000.

Advancing Digital e-Business Information Strategy to "Internet Time"
Information Strategy: The Executive’s Journal, 2000.

Innovative 'Loose-Tight' Systems for Agile Digital Business Models
Information Resources Management Journal, 2000 Mar.

Preventing Model Risks in Digital Business Models & Decision Models
Knowledge Management for the Information Professional, 2000.

BOOK: Knowledge Management and Virtual Organizations
Genesis of Knowledge Management for Virtual Organizations, 2000.


Modeling How Human Information-Processing Guides Meaning & Behavior
Journal of High Technology Management Research, 1999 Oct .


CIO Magazine Interview: Does KM=IT? Does 'Reality' = 'Model'?
CIO Magazine, 1999 Sep.


Advancing Beyond Model Risks in Knowledge Management Systems
Knowledge Management (UK), 1999 Mar.


Multivariate Regression Models of Social Influences in Social Networks
IEEE, 1999 Jan.


Systems & Decision Models for Black Swans in Wicked Environments
Americas Conference in Information Systems, 1997 Aug .


Academy of Management Best Reviewer Award: Quantitative Analytics
100+ Quantitative Statistical Modeling Reviews for 40+ Research Publishers.


National Science Foundation Cybercomputing-Cybersecurity Expert Panels
32 National Science Foundation Computer Scientists SBIR/STTR Expert Panels.


Google Scholar: Decision Models, Risk Models, Uncertainty Management
20-Year Research Program: Global Impact on Worldwide Firms & Governments.


Other Computational Quantitative Finance & Risk Analytics Publications
1993-Current .

Other Computational Quantitative Finance & Risk Analytics Projects

Griffiss Cyberspace : Princeton FinTech Crypto Expert : MIT AI-Machine Learning Expert : Wall Street Hedge Funds Quant
Impact: [AI & Machine Learning : Cybersecurity & Cryptography : Computational Quant Finance : Digital Transformation]
FinRM™: [Download our Research:
Future Of Finance™ : MIT AI-ML-NLP-RPA : Princeton FinTech-Quant-Crypto]
Who's Who in America®, Who's Who in the World®, Who's Who in Finance & Industry®, Who's Who in Science & Engineering®
MIT: AI & Machine Learning: Industry Expert: MIT AI-Machine Learning Executive Guide including RPA & Cognitive Automation.
Princeton University: Invited Presentations: AI, Machine Learning, Deep Learning: Princeton Quant FinTech Presentations.
Ranked among Finance & IT Nobel Laureates in AACSB and Scientific Impact Studies for Real World Impact of Research.

2015-2018: 63 SSRN Top-10 Research Rankings: Top-3% SSRN Authors:
AI, Algorithms & Machine Learning; Anticipatory & Predictive Analytics:
Computer Science, Cybersecurity, Insurance, Quantitative Finance & Trading
SSRN Top-10 Research Ranking Categories:
• Accounting Technology & Information Systems,
• Accounting, Corporate Governance, Law & Institutions,
• Artificial Intelligence,
• Banking & Insurance,
• Capital Markets,
• Cognition in Mathematics Science & Technology,
• Community College Education,
• Computational Biology,
• Computational Techniques,
• Computer Science,
• Computing Technologies,
• Conflict Studies,
• Corporate Governance Practice Series,
• Corporate Governance: Disclosure Internal Control & Risk-Management,
• Cultural Anthropology,
• Cyber-Conflict (Inter-State),
• Cyberlaw,
• Decision-Making under Risk & Uncertainty,
• Econometric & Statistical Methods,
• Econometric Modeling,
• Econometric Modeling: Capital Markets - Risk,
• Econometrics,
• Econometrics: Econometric & Statistical Methods,
• Econometrics: Mathematical Methods & Programming,
• Economics of Networks,
• Forensic Accounting,
• Government Expenditures & Education,
• Hedging & Derivatives,
• Information Systems & Economics,
• Information Systems: Behavioral & Social Methods,
• Information Technology & Systems,
• Innovation & Management Science,
• Innovation Finance & Accounting,
• Innovation Law & Policy,
• Inter-State Conflict,
• Interorganizational Networks & Organizational Behavior,
• IO: Productivity, Innovation & Technology,
• IO: Regulation, Antitrust & Privatization,
• Labor: Human Capital,
• Legal Perspectives in Information Systems,
• Machine Learning,
• Mathematical Methods & Programming,
• Microeconomics,
• Microeconomics: Decision-Making under Risk & Uncertainty,
• Military & Homeland Security,
• Mutual Funds, Hedge Funds, & Investment Industry,
• Operations Research,
• Pedagogy,
• Political Economy - Development: Public Service Delivery,
• Postsecondary Education,
• Risk Management,
• Risk Management & Analysis in Financial Institutions,
• Risk Management Controls,
• Risk Modeling,
• Risk, Regulation, & Policy,
• PSN: Security & Safety,
• Social Network Analysis,
• Sociology of Innovation,
• Stochastic Models,
• Sustainable Technology,
• Systemic Risk,
• Telecommunications & Network Models,
• Uncertainty & Risk Modeling,
• VaR Value-at-Risk.

Recent Research Presentations and Research Reports
*2018 Princeton FinTech & Quant Conference: Invited Research Presentation: AI-Machine Learning-Deep Learning MRM.
*2018 MIT Sloan-Computer Sc. & AI Lab AI-Machine Learning Executive Guide including RPA & Cognitive Automation
*2018 Journal of Operational Risk, March: Toward 'Cyber-Finance’ Cyber Risk Management Frameworks of Practice.
*2017 National Association of Insurance Commissioners, June , Advancing Cyber Risk Insurance beyond VaR Models.
*2017 IUP Journal of Computer Sciences, April, Quantitative Modeling of Trust and Trust Management Protocols.
*Stress Testing for Cyber Risks: Cyber Risk Insurance Modeling beyond Value-at-Risk: Risk, Uncertainty, & Profit.
*Toward Integrated Enterprise Risk Management, Model Risk Management & Cyber-Finance Risk Management.
*Bridging Networks, Systems and Controls Frameworks for Cybersecurity Curricula & Standards Development.
*Advancing Cognitive Analytics Using Quantum Computing for Next Generation Encryption.
*Invited Princeton Quant Trading Presentations: 'Rethinking Finance' for the Era of Global Networked Digital Finance.
*2016 Princeton Quant Trading Presentation: Beyond Model Risk Management to Model Risk Arbitrage for FinTech Era.
*2015 Princeton Quant Trading Presentation: Future of Finance Beyond 'Flash Boys': Managing Uncertainty.
*
Cybersecurity & Cyber-Finance Risk Management: Strategies, Tactics, Operations, &, Intelligence: ERM to MRM.
*A Risk Management Framework for Penetration Testing of Global Banking & Finance Networks VoIP Protocols.
*CyberFinance: Why Cybersecurity Risk Analytics Must Evolve to Survive 90% of Emerging Cyber Financial Threats.
*Beyond 'Bayesian vs. VaR' Dilemma: How to Manage Risk (After Risk Management Has Failed) for Hedge Funds.
*
Measuring & Managing Financial Risks with Improved Alternatives Beyond Value-at-Risk (VaR).
*Markov Chain Monte Carlo Models for High-Dimensionality Complex Stochastic Problems in Network Security.
*Risk, Uncertainty, & Profit for the Cyber Era: 'Knight Reconsidered': Model Risk Management in Cyber Risk Insurance.
*Cyber-Finance Risk Management: Strategies, Tactics, Operations, &, Intelligence: ERM to Model Risk Management.
*Number Field Sieve Cryptanalytic Algorithms for Most Efficient Prime Factorization on Composites: Beyond RSA 1024.
*Future of Bitcoin & Statistical Probabilistic Quant Methods: Global Financial Regulation: Hong Kong Institute of CPAs.
*Bitcoin Protocol & Bitcoin Block Chain: Model of 'Cryptographic Proof' based Global Crypto-Currency Payment Systems.
*2015-2018 63 SSRN Top-10 Rankings: Computational Quant & Risk Analytics Algorithms Machine Learning Research.
*2008 AACSB International Impact of Research Report: Among Black-Scholes, Markowitz, Sharpe, Modigliani & Miller.

Top Wall Street Investment Banks Quantitative Finance Projects & FinTech Ventures
Princeton: Future of Finance: 'Rethinking Finance' for Era of Global Networked Digital Finance
2017 National Association of Insurance Commissioners: Expert Paper: Cyber Risk Insurance Modeling
2016 Princeton Quant Trading Conference: Invited Research Presentation: Model Risk Arbitrage
2015 Princeton Quant Trading Conference: Invited Research Presentations: Future of Finance
Quantitative Finance Risk Analytics Modeling Wall Street Investment Banks & VC Projects
Model Risk Management: Risk Management Analytics from 'Prediction' to 'Anticipation of Risk'
Quantitative Finance Risk Analytics, Econometric Analytics, Numerical Programming Models
Quantitative Finance Model Risk Management for Systemic-Tail Risks in Cyber Risk Insurance
JP Morgan Portfolio Optimization, VaR & Stress Testing: 17-Asset Class Portfolio
JP Morgan Portfolio Liquidity Risk Modeling Framework for $500-600Bn Portfolio
Bayesian VaR Beyond Value-At-Risk (VaR) Model Risks Exposed by Global Financial Crisis
Goldman Sachs Alumnus Asset Manager Large-Scale Data High Freq Econometric Models
Quantitative Finance, Risk Modeling, Econometric Modeling, Numerical Programming
Technologies of Computational Quantitative Finance & Risk Analytics and Risk Management
Algorithms & Computational Finance: C++, SAS, Java, Machine Learning, Signal Processing
Cybersecurity, Financial Protocols & Networks Protocols Analysis, and, Penetration Testing
Impact: Quantitative Finance, Quantitative Risk Analytics & Risk Management Projects
Digital Social Enterprise Ventures Creating Trillion $ Practices for Hundreds of Millions

Named among FinTech Finance & IT Nobel laureates for Real World Impact of Research
FinTech Innovations: Model Risk Arbitrage, Open Systems Finance, Cyber Finance, Cyber Insurance
AACSB International Reports Impact of Research among Black-Scholes, Markowitz, Sharpe
Research Impact Recognized among Finance & Information Technology Nobel laureates
63 SSRN Top-10 Rankings: AI, Algorithms & Machine Learning; Cybersecurity; Computational Quant Finance
FinTech Innovations: Model Risk Arbitrage, Cyber Finance, Cyber Risk Insurance Modeling
Computational Quantitative Finance Modeling & Risk Management Research Publications
Model Risk Management of Cyber Risk Insurance Models & Quantitative Finance Analytics
Thesis on Ongoing Convergence of Financial Risk Management & Cyber Risk Management
U.S. Federal Reserve & Office of the Comptroller of the Currency Model Risk Guidance
Bayesian VaR Beyond Value-At-Risk (VaR) Model Risks Exposed by Global Financial Crisis
Markov Chain Monte Carlo Models & Algorithms to Enable Bayesian Inference Modeling
OCC Notes Cybersecurity Risk & Cyber Attacks as Key Contributor to Banks' Financial Risk
Future of Bitcoin & Statistical Probabilistic Quantitative Methods: Global Financial Regulation
Models Validation Expert Panels: IT, Operations Research, Economics, Computer Science

Global, National, & Enterprise CxO Level FinTech-Cyber-Risk Analytics Ventures
CxO Think Tank that pioneered 'Digital' Management of Risk, Uncertainty, & Complexity
CxO Consulting: Global, National & Corporate Risk Management Practices Leadership
CxO Guidance: Cyber Defense & Finance-IT-Risk Management: Uncertainty & Risk
CxO Keynotes: Conference Board, Silicon Valley, UN, World Economy: Uncertainty & Risk
The Future of Finance Project Leading Quantitative Finance Practices at Elite Conferences
The Griffiss Cyberspace Cybersecurity Venture Spans Wall Street and Hi-Tech Research
UN Quantitative Economics Expert Paper & Keynote on Global Economists Expert Panel
National Science Foundation Cybersecurity & Cybercomputing National Expert Panels
Digital Social Enterprise Innovation Ventures Pioneering the Future of Risk and Quant
Global Footprint of Worldwide World-Leading CxO Risk Management Ventures & Practices