Introduction

Good evening, it is my pleasure to be here at EDHEC-Risk Institute’s 10th Anniversary celebrations. Just nine months ago, we celebrated the opening of EDHEC-Risk Institute Asia here in Singapore, marking the start of the Asian chapter in the EDHEC growth story.

The world in a state of uncertainty

2   Within this short span of time however, the global economic environment has become more uncertain. Growth in the US remains hobbled by persistently high unemployment rates, the weak housing sector and continued fiscal problems. The probability of recession has increased as a result. Eurozone growth has also decelerated, on the back of weaker consumption in the core economies and intensifying sovereign debt concerns.  Recovery measures targeted at addressing the underlying problems have thus far met with political difficulties, resulting in a climate of uncertainty and a lack of confidence in the markets.

Importance of Research to the Financial Industry

3.   The crisis has resulted in fundamental changes in the financial landscape globally. As a new normal emerges, there are new lessons to be learnt and policies to reconsider for industry players and regulators alike.  Research institutes and their offerings thus have an important role to play in providing thought leadership and answering these questions.

4.   Fundamentally, the value of research lies in its potential to help us understand, evaluate and innovate. Financial research can help us to understand the underlying causes for the present uncertainty and evaluate the possible solutions that could be taken. More importantly, financial research enables us to learn from our present problems in order to develop sound policies for the future.

5.   In the asset management space, financial research can contribute towards guiding sound investment decisions. Greater emphasis on risk management techniques and the optimal allocation of assets is needed to enable asset managers to ride out the volatility presently being experienced.  Financial research can play a part in these efforts by developing more robust risk management techniques and tools for assessing risk exposures.  Research can also help better inform policy decisions by assessing the impact of potential regulatory action meant to address issues concerning our financial systems. 

EDHEC-Risk Institute’s Achievements in Singapore

6.    EDHEC-Risk Institute has understood well the value of financial research and has worked hard in the past 10 years establishing itself as a thought leader in the areas of risk and asset management.  The institute has tapped on the strengths of its faculty and maintained its commitment towards delivering state-of-the-art applied financial research.

7.    Notably, the institute has dedicated efforts towards bringing its philosophy of “Research for Business” to other parts of the world, with the setting up of research centres in London and in Singapore.  In the short time that EDHEC has established its presence in Singapore, the Asian centre has made its mark with research publications in top financial research journals as well as the publication of a book on financial risk measurement by Head of Research Professor Stoyan Stoyanov.  The Asian centre has also successfully engaged industry partners in the conduct of its research, as shown in the number of industry-sponsored projects that the institute has undertaken. The Executive PhD programme in Singapore is also a testament of EDHEC’s innovation and understanding of industry needs as well as its dedication towards grooming the future leaders of the financial industry.

8.    We would like to commend EDHEC-Risk institute for its distinctive industry-relevant approach, focus on direct application and also its openness to working with the financial community in Singapore and in Asia. The MAS is a keen supporter of such industry-relevant research, which encourages collaborative partnerships and helps to further the maturity of the markets.  To that end, EHDEC-Risk Institute’s “Research for Business” model has contributed much to the financial research ecosystem and the financial sector here.

Conclusion

9.    In conclusion, financial research has an important role to play in providing guidance and shaping the way forward through the current fog of uncertainty that is plaguing the industry. 

10.  As the financial landscape continues to evolve, the economic centre of gravity continues to shift towards the East.  Singapore is well placed to shape and contribute to these shifts, and grow as one of the leading financial centres in the region, especially with partners such as EDHEC.

11.  We would like to congratulate EDHEC-Risk Institute on its 10 remarkable years and wish all at the Institute continued success.