Como, August 26-th 2015. Dr. J. Marczyk, the Founder and President of Ontonix, has published a book entitled "Complexity and Resilience Rating: New Paradigms in Finance, Economics and Sustainable Investment". The goal of the book is illustrate how measuring complexity and resilience establishes the foundations of a new rating mechanism for stocks, portfolios, funds, corporations, national economies or systems thereof.
"With all likelihood high complexity is the most evident and dramatic characteristic of not just the economy; it is also the hallmark of our lives", said Dr. Marczyk. "In a complex economy conventional risk management, risk rating and business intelligence technologies are becoming dangerously outdated. The tools and solutions presented in the book have been architectured specifically for turbulence and for a complex economy dominated by shocks, destabilizing events and instability" he added. "In an interconnected economy rating single companies provides little insight as to their state of health and sustainability and performing large-scale systemic analyses of ecosystems of corporations becomes the source of new knowledge and new insights for the global investor. What we need today is a new approach to rating and a new global, transparent and independent rating agency. Most importantly, a new rating paradigm must reach beyond the conventional Probability of Default concept and focus on resilience, the fundamental characteristic of a sustainable business" he continued. "I would like to thank Dorian Credé for writing the Forword", he concluded.
Numerous examples throughout the book introduce many new techniques and concepts such as the following:
- Complexity of the global economy
- Systemic aspects and fragility
- New sustainability measures
- The Global Financial Complexity Index
- Rating stocks and portfolios
- Complexity-based portfolio design
Finally, the book outlines the salient characteristics of a future global rating agency which the author has been promoting for a number of years.
To order the book, click here.
Dr. Marczyk, author of eight books on stochastics and complexity management, has developed in 2003 the Quantitative Complexity Theory (QCT), Quantitative Complexity Management (QCM) methodologies and a new complexity-based theory of risk and rating. In 2005 he founded Ontonix, the first company to measure the complexity of generic systems. In 2009 he introduced a resilience-based rating system for businesses and financial products, pioneering the quantification of complexity in finance. After founding London-based Assetdyne in 2013, and introducing the Global Financial Complexity and Resilience Indices, he is focusing on complexity-based techniques of asset allocation and portfolio design.
Dr. Marczyk holds an MS in Aeronautical Engineering (Politecnico di Milano), MS in Aerospace Engineering (Politecnico di Torino) and a Ph.D in Civil Engineering (Universidad Politecnica de Catalunya). During his career he has held various executive positions and has worked for companies such as EADS, BMW AG, Centric Engineering Systems, ESI, Silicon Graphics, Tecnomare, EASi and MSC Software. He has lived and worked on four continents and is fluent in five languages.