Hanwha Asset Management Holds Seminar on the Need to Establish a Preemptive System for Unstructured Risk

[Asia Economy Reporter Eunmo Koo] Hanwha Asset Management announced on the 24th that it held an online seminar on the 21st at the Diamond Hall of the Federation of Korean Industries Conference Center in Yeouido, Seoul, under the theme "The Necessity of Establishing a Preemptive Response System for Unstructured Risks."

Previously, in November last year, Hanwha Asset Management conducted a seminar with the Korean Academic Society of International Business and Wilshire on the theme "Global Outsourced Chief Investment Officer (OCIO) Alternative Investment Cases and Domestic OCIO Preparedness."

This seminar was held to provide conceptual and methodological understanding of the natural language processing (NLP)-based early warning system that Hanwha Asset Management is developing in the form of research services, amid growing interest in unstructured risks such as the spread of COVID-19. Originally planned as an offline seminar, it was broadcast live through Hanwha Asset Management's YouTube channel due to the resurgence of COVID-19.

Kim Yong-hyun, CEO of Hanwha Asset Management, emphasized, "As the digital financial environment, including contactless services and fintech in the financial sector, rapidly changes, risk measurement methods are also becoming unstructured, and a new system to predict and manage these risks is necessary."

The first presentation, titled "Regret over Risk Management Using Structured Data," was given by Professor Kim Sol of Hankuk University of Foreign Studies, and the second presentation, titled "Asset Management in the Era of Unstructured Uncertainty? Focusing on Risk Management Based on Unstructured Data," was delivered by Professor Kang Hyung-gu of Hanyang University. In the panel discussion, Dr. Nam Jae-woo from the Korea Capital Market Institute served as the moderator, with panelists from major pension funds participating alongside the presenters.

Professor Kim Sol of Hankuk University of Foreign Studies stated, "In an era of qualitative uncertainty, traditional risk management based on structured data inevitably faces limitations of being retrospective or concurrent to risks, making risk management based on unstructured data indispensable."

Professor Kang Hyung-gu of Hanyang University introduced cases of institutions utilizing unstructured risk early warning systems, including the Ministry of Employment and Labor and Hanwha Asset Management. He said, "I want to emphasize the significance of Hanwha Asset Management's attempt to develop an early warning system by applying Google's BERT, a state-of-the-art artificial intelligence technology, using both Korean and English data."

In the panel discussion, Park Seung-hyun, Head of the Fund Management Center at the Korea Radioactive Waste Agency, stressed, "Based on operational experience during periods of high market volatility caused by the COVID-19 crisis this year, I agree on the necessity of an unstructured risk early warning system."

Choi Young-min, Head of Fund Policy Analysis at the National Pension Research Institute, analyzed, "When analyzing risks using unstructured media data, additional research is needed on data quality management aspects such as repetitive news and fake news, as well as on data expansion aspects that utilize not only text data but also image data."

Ko Jun-ho, Head of the Solution Business Division at Hanwha Asset Management, stated, "We will continue to hold OCIO seminars regularly to enhance the understanding of OCIO business among capital market participants and strive to contribute to the development of the OCIO ecosystem through joint research activities between industry and academia."

This content was produced with the assistance of AI translation services.