HSBC uses Model Based Design for Financial Risk Management - MATLAB & Simulink
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    HSBC uses Model Based Design for Financial Risk Management

    Ray O’Brien, HSBC

    Financial risk technology stacks are evolving in response to regulatory and geopolitical change, bigger datasets, and rapidly changing development cultures. Model Based Design provides critical model development and implementation.

    Published: 8 Dec 2020

    I'm going to try and entertain you with a little bit about what modeling means in finance. We do model-based design in finance because we have to actually try and predict possibilities into the future. Looking at all the outcomes that could potentially happen, lots of shocks, looking at black swan events, all those types of things you might have heard of, with enormous amounts of calculations and huge volumes of data.

    The actual model build itself is actually the shortest part of a life cycle. That's the data manipulation that's actually takes the longest amount of time.

    So the first thing we did with MATLAB was look at the life cycle of a model and see how they could help us on both accessing and exploring the data, processing it, building and validating models, and then deploying those models into production. All four steps of the life cycle using the MATLAB tools interacting with our data and then adding our own elements on top of that to allow us to build a standard developing environment for a lot of these financial models and then using those models for multiple purposes.