TCS has entered into multi year strategic collaboration with Institute for Quantitative Finance (IQFI), at the University of Waterloo, Waterloo, Canada.

Financial risk management has become an extremely important discipline - for corporations, financial institutions and many government enterprises. The revolution in the financial services industry that has occurred in the last thirty years has been caused by the confluence of several factors. These include advances in information technology, deregulation, liberalization and globalization. One of the main results of this revolution has been the development of new models for risk management. Old-fashioned methods have been replaced by sophisticated scientific approaches.

The University of Waterloo has both width and depth in terms of its expertise in risk management. It boasts the strongest actuarial science faculty in North America.

The research will particularly focus on

• Pricing and hedging of complex financial derivatives
• Estimation of Value at Risk (VAR).

The funds will be used to support graduate students and post-doctoral fellows.

Principal Investigator: Prof. Tom Coleman