Ayesha  Bose

Ayesha Bose

Scholar Title

MIT EECS - Draper Laboratory Research and Innovation Scholar

Research Title

Systemic Risk in the Financial System




Andrew W. Lo


Systemic risk is a difficult concept to define. Within the financial industry it involves the complex system, focusing on the connections between institutions and how illiquidity, insolvency, and losses can quickly propagate. In a paper published by Bisias, Flood, Lo and Valavanis (2012), they looked at four types of institutions: hedge funds, banks, broker/dealers, and insurance companies and identified 31 financial indicators that could help predict a systemic event, using principal components analysis to find common factors that influence these institutions. Moving forward, we would like to construct new indicators that aggregate the existing measures and improve performance. Ultimately, we want to create an online public resource that displays a kind of “system status” for systemic risk


I externed with NASDAQ OMX’s Risk Managment group, evaluating consolidated risk for the company from multiple global databases. Reports were sent to senior NASDAQ executives on a daily basis. I also interned with Google on the Site Reliability team for Gmail, developing a dashboard to display metrics for the Gmail release process.

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