Silicon Valley forum innovation: incentives for ethics in finance
New Sury Initiative in Silicon Valley Seeks to Integrate Ethics, Innovation, and Finance
SANTA CLARA, Calif., Nov. 20 /PRNewswire/ — A new initiative in the Silicon Valley is creating a forum for the leading minds in ethical financial innovation, responsible risk management, and behavioral finance. Sharath Sury, who is a noted professor of finance at Santa Clara University and a previous member of the law enforcement community (investigating white collar and organized crime), recently designed and developed the new forum, named the “Sury Initiative for Financial Innovation and Risk Management (SIFIRM),” in conjunction with a number of other scholars from the University, including Professors Sanjiv Das and George Chacko.
Sury, who also retired from Chicago-based investment firm S4 Capital prior to his career in academia, said, “Our mission is to engage scholars, practitioners, and students to investigate new frontiers in financial innovation and risk management.” Under Sury’s leadership, S4 Capital grew to become the #1 ranked wealth management firm in 2007, according to Wealth Manager Magazine. The firm was also quoted as an example in the book, “Investment Leadership: Building a Winning Culture for Long Term Success,” by Jim Ware, et. al.
While the entire financial industry and its regulators have been under pressure to continue to redefine themselves in the face of one of worst economic crises since the Great Depression, the concept of “ethical finance” has become more and more pertinent. Indeed, Sury said, “No financial services firm–whether it includes well reputed companies like Goldman Sachs, Morgan Stanley, or even S4–has been immune from both internal and regulatory pressures to continue to review and improve practices.”
As the industry looks to build new “best practices,” initiatives like SIFIRM may take the lead in bridging the gaps that may exist among academics, practitioners, and regulators. Its board of advisors includes two Nobel Laureates, pioneers in behavioral finance and risk management, experts on asset allocation and risk budgeting, and CEOs of notable firms related to the financial services industry.
“The best outcome may need to include a new vision of how the capital markets should operate, an examination of regulatory and enforcement mechanisms to control systemic risks and promote a fair market system, and a rational evaluation of the incentives that may influence the behavior of all the ‘actors’ in the financial system, including firms, clients, and regulators,” said Sury.
VALARIE DUNCAN for FRANK MANAGEMENT GROUP contact@gofmg.biz 1-800-267-8438 x704
SOURCE SIFIRM
I know some of the folks involved in this Institute and it is one of the more innovative programs we’ve seen. Sharath Sury, Sanjiv Das, Meir Statman, and Hersh Shefrin: they are all at the top of their fields. As SCU is a Jesuit school, it does seem to make sense that the start of the new “moral compass” should begin there. I’m a fan and supporter.
I’m from the industry.
Professor Sharath Sury’s diverse background in education, law enforcement, and wealth management has enabled him to be a visionary in the realm of behavioral finance and risk management.
As a former student of Professor Sury, I have experienced the passion and energy that he and the Santa Clara University community exude around SIFIRM. It is contagious. I am confident that SIFIRM will add great value to Santa Clara University’s mission and Jesuit reputation. The research done here will surely aid in solving some of our most pressing global problems, offering a beacon of light for those interested in delving deeper into the ethical issues of the worldwide financial industry.
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