Physics of Risk: new tools to survey the Australian market and beyond

This project addresses a major challenge faced by those working in finance: find a quantitative measure of the market efficiency to lead quantification of risk. It will develop innovative, flexible methods to characterize, survey and monitor financial market structure and emergence of organized behaviours. The project involves the application of advanced ideas from mathematical finance, complex system studies, science of networks and adaptive stochastic optimal control theory: new approaches developed by physical scientists to deal with systems at the edge of chaos . It will increase understanding of the fundamental science and develop tools for risk control and management.