FXRED: Foreign Exchange Risk Management Project

This project addresses fundamental research problems in Treasury Risk Management decision-making using sophisticated Knowledge Representation and Reasoning techniques. In terms of scientific challenge the main problem is building models of financial exposure under conditions of high levels of information uncertainty, incompleteness and volatility. The financial environment is highly dynamic and companies do not have certain or complete information upon which to base their investment decisions. In these circumstances agile and dynamic Decision Support Systems that can provide appropriate risk management decision support are of critical importance.

Treasury risk management has recently been identified as a key concern to both banks and their corporate customers. Current technology copes poorly with dynamically changing business requirements and conditions so there is little technological support available for organizations increasingly obliged by financial regulators to improve their risk management practices (Financial Services Reform Act 2002 in Australia and the Sarbanes Oxley Act 2002 in the USA).

Chief Investigators

Prof Steve Elliot (Wholesale Financial Services Industry Expert)
Dr Robert Gray (exBanker and Director of the US Federal Reserve) Dr Alankar Karol (Certified Finance & Treasury Professional FTA)
Prof Mary-Anne Williams (Certified Finance & Treasury Professional)