Machine learning, stress tests and Sonia - Risk.net

European banks face'bottleneck' to complete EBA stress test New accounting rules and supervisor demands squeeze teams prepping for 2018's exercise It's not going too far to suggest that, in 10 or 15 years' time, the job of a risk manager will be largely that of a machine overseer. Many risk managers may feel this is already the case. Our coverage this week highlights some of the advantages and the dangers of the change. At JP Morgan Asset Management and Citadel, the development of big data technology is producing tempting results – the companies' existing stocks of data on credit history and investment performance can now be exploited as never before. The implications are interesting; if the edge for asset managers of the future comes from sophisticated processing of existing information – what the intelligence community would call open-source intelligence – then the incentives for market abuse through insider trading may be reduced.