US Federal Reserve Taps Rotman Professor

US Federal Reserve Board BuildingPeter Christoffersen, professor of finance at the Rotman School, has been appointed to the U.S. Federal Reserve Board’s newly-formed Model Validation Council that will assess the models currently used to stress test banking institutions. Christoffersen is also the academic partner for Canadian Investment Review’s Risk Management Conference, which is being held August 21 -23 in Muskoka, Ontario.

Christoffersen’s main research areas are option valuation and risk management systems and his work with the Federal Reserve Board will help the organization carry out annual stress tests of banks as required under the new Dodd-Frank legislation. The Model Validation Council will be asked for input on the Board’s efforts to assess the effectiveness of the models used in the stress tests. The council is intended to improve the quality of the Federal Reserve’s model assessment program and to strengthen the confidence in the integrity and independence of the program.