SymposiumonManagingSystemicRisk inEnergy, Environment, and Infrastructure

CENTER FOR THE MANAGEMENT OF SYSTEMIC RISK

Recent systemic failures in different domains such as the BP Deepwater Horizon Oil Spill, Northeast Power Blackout, Global Financial Crisis, and Hurricane Sandy’s damage to critical infrastructure, have reminded us, once again, of the fragility of complex sociotechnical systems. Although these failures were triggered by different causes, there are, however, notable failure mechanisms that are common among them. Understanding and learning from these mechanisms are essential to avoid such disasters in the future.

To accomplish this, one needs to go beyond analyzing them as independent one-off events, and examine them in the broader perspective of the potential fragility of complex sociotechnical systems. One needs to study them from a holistic systems engineering perspective, so that one can thoroughly understand the commonalities as well as the differences to manage systemic risk better in the future. Further, such studies need to be carried out in concert with public policy and regulatory experts so that all the scientific, engineering, and human decision-making lessons can be translated into effective policies and regulations.

Towards this goal, the Center for the Management of Systemic Risk at Columbia University, conducts transdisciplinary research, education and outreach programs on systemic risk modeling, analysis and management. We focus on challenges in the financial, sustainable energy & environment, infrastructure, and healthcare domains.

As part of our outreach effort, we organize symposia by bringing together world-class experts on risk management in diverse disciplines to promote discussion and cross-fertilization across domains. The first symposium, held on June 26, 2014, focused on the theme of Management of Systemic Risk in Finance, which was very successful.

This second symposium focuses on examining the technical, policy, implementation, and financial challenges at the nexus of sustainable energy, environment, and infrastructure. This symposium features leaders from academia, industry, business, and regulatory agencies as speakers, panelists, and audience members.

Image sources: Northeast Power Blackout: http://www.noaanews.noaa.gov/stories/s2015.htm Hurricane Sandy: https://www.flickr.com/photos/that_chrysler_guy/8139116603/in/photostream/

May26,2016KelloggCenterColumbiaUniversityNewYorkCity

ProfessorVenkatVenkatasubramanian

ColumbiaUniversity

ProfessorPaulGlasserman

ColumbiaBusinessSchool

ProfessorMiguelCenteno

PrincetonUniversity

SymposiumCo-Chairs

Organizedby

ColumbiaUniversity

PrincetonUniversity

ColumbiaBusinessSchool

CONNECTWITHUSrisk.columbia.edu|cmsr@columbia.edu

Northeast Power Blackout (2003) Hurricane Sandy (2012)

SpeakersandPanelists

LizaAbad,EnterpriseRiskManager,PRMIALiza Abad is Enterprise Risk Manager at Hess Corporation, a Fortune 100 E&P company, with portfolioresponsibilities overseeing North America onshore, Asia Pacific and Australia regions. In Asia, Liza wasresponsibleforrolloutoftheEnterpriseRiskprograminMalaysia,China,andAustralia.LizaalsoservedinaresearchandadvisorycapacityinHess’CorporateStrategygroup,shepherdingthecountryriskprogramandmethodologydevelopment.PriortojoiningHess,LizawasatMirantCorporationandBankofAmerica.Lizahasbeenactivelyinvolvedintheriskprofessionalandstrategycommunity,furtheringriskmanagementbestpractices and educational needs of energy professionals. At Professional Risk Managers' InternationalAssociation (PRMIA), she has served various global roles (Global Speaker Coordination Leader, SME andadvisoryroles)andchapterlevelroles(HoustonandNewYorkSteeringCommittees).

DanielBienstock,Professor,ColumbiaUniversityDaniel Bienstock is a professor at the IEOR Department at Columbia University. His theoretical researchfocuseson fundamental and computational aspectsofnonlinear,nonconvexanddiscreteoptimization.Aparallelresearchthrustconcernsthestudyofproblemswithhighsocietalimpact,suchastheevolutionofepidemicsandinparticularthestudyoffailuresofpowertransmissionsystems.HeisaFellowofINFORMS,theEditor-in-ChiefofMathematicalProgrammingC,andtherecipientofanIBMFacultyPartnershipAwardandanNSFPresidentialYoungInvestigatoraward.

Jason Bordoff, Professor of Professional Practice in International and PublicAffairs,ColumbiaUniversityJasonBordoffjoinedtheColumbiafacultyafterservinguntilJanuary2013asSpecialAssistanttothePresidentandSeniorDirectorforEnergyandClimateChangeontheStaffoftheNationalSecurityCouncil,and,priortothat, holding senior policy positions on the White House's National Economic Council and Council onEnvironmentalQuality.Oneoftheworld'stopenergypolicyexperts,hejoinedtheAdministrationinApril2009.AtColumbia'sSchoolofInternationalandPublicAffairs,BordoffisaProfessorofProfessionalPracticeandservesasfoundingDirectorofSIPA'sCenteronGlobalEnergyPolicy.PriortojoiningtheWhiteHouse,BordoffwasthePolicyDirectoroftheHamiltonProject,aneconomicpolicyinitiativehousedattheBrookingsInstitution.

Miguel Centeno, Department Chair &Musgrave Professor of Sociology andInternationalAffairs,DirectorofPIIRSGlobalSystemicRisk,PrincetonUniversity ProfessorCentenohaspublishedmanyarticles,chapters,andbooksmostrecentlyStateandNationMakingintheIberianWorld(Cambridge2013).WarandSocietywillbepublishedbyPolityin2016andStateMakingin theDevelopingWorld byCambridge in 2016.He is the founderof theResearchCommunity onGlobalSystemicRiskfundedbyPIIRSfrom2013-20(risk.princeton.edu)andrecentlypublished“TheEmergenceofGlobalSystemicRisk”intheAnnualReviewofSociology(2015).Beginningin2012,hehasservedasChairoftheSociologyDepartment.In2014heproducedaCourseracourseon“TheParadoxesofWar”.

RonDembo,CEO,ZerofootprintDr.RonDemboistheFounderandCEOofZerofootprint,acompanytargetingmassivepositivesocialandbehavioralchange.PriortoZerofootprint,Dr.DembowastheFounderandCEOofAlgorithmicsInc.,growingitfromastart-uptotheworld’slargestenterpriserisksoftwarecompanyuntilitwassoldtoFitchin2005andthenIBMin2012.AlgorithmicswasrecognizedasoneofCanada’s50BestManagedcompaniesduringhistenure.

MichaelFerguson,Director,USEnergyInfrastructure,Standard&Poor’sMichaelFergusonisaDirectorintheUSEnergyInfrastructuregroupatStandard&Poor’sRatingsServicesinNewYorkCity.Heworksonthemerchantpowerandmidstreamenergyteam,coveringaportfolioofprojectfinanced power plants, pipelines, and independent power producers. Ferguson is a Chartered FinancialAnalyst,aCertifiedPublicAccountant(DCandVA),aCharteredAlternativeInvestmentAnalyst,andaCertifiedFraudExaminer.

Robert Freudenberg, Director, Energy and Environment, Regional PlanAssociation(RPA)Robert Freudenberg is Director of RPA's Energy and Environmental programs, leading the organization’sinitiativesinseveralareas.HeoverseesacomprehensiveprogramofprojectsandpoliciesintheNewYork-NewJersey-Connecticutmetropolitanarea.FreudenberghasbeenwithRPAsince2006andmostrecentlyservedasNewJerseydirector.PriortojoiningRPA,Freudenbergservedasacoastalmanagementfellowatthe National Oceanic and Atmospheric Administration, where he focused on policies for the New JerseyDepartmentofEnvironmentalProtection.

PaulGlasserman, JackR.AndersonProfessorofBusiness,ColumbiaBusinessSchoolProfessorGlasserman'sresearchandteachingaddressriskmanagement,thepricingofderivativesecurities,statisticsandoperations.PriortojoiningColumbia,GlassermanwaswithBellLaboratories;hehasalsoheldvisitingpositionsatPrincetonUniversity,NYU,andtheFederalReserveBankofNewYork.GlassermanservesontheeditorialboardsofFinance&Stochastics,MathematicalFinance,theJournalofComputationalFinance,and the SIAM Journal on Financial Mathematics. He chairs the Education Committee of PRMIA, theProfessionalRiskManagers’InternationalAssociation.GlassermanwasseniorvicedeanofColumbiaBusinessSchoolin2004-2008andservedasinterimdirectoroftheSanfordC.Bernstein&Co.CenterforLeadershipandEthicsin2005-2007.

Neil Hawkins, Corporate Vice President, Chief Sustainability Officer, DowChemicalDr. Neil Hawkins currently serves as the Chief Sustainability Officer and Corporate Vice President forEnvironment,Health&Safety(EH&S)forTheDowChemicalCompany.Hawkinsisagloballeaderintheprivatesector in sustainable business practices, EH&Smanagement, and national and international public policyplatformsforglobalsustainabledevelopment.HawkinswastheDowexecutiveleadingthedevelopmentoftherecentlyannounced2025SustainabilityGoals,whichhavethepotentialtoredefinetheroleofbusinessinsustainabledevelopment.DuringhistenureatDow,hehasalsobeenthearchitectofmanygroundbreakingcollaborations,includingtheDow/NatureConservancyCollaborationonvaluingnatureinbusinessdecisions.

Garud Iyengar, Department Chair & Professor of Industrial Engineering &OperationsResearch(IEOR),ColumbiaUniversityProfessorIyengar’sresearchinterestsincludeconvexoptimization,robustoptimization,queuingnetworks,combinatorial optimization, mathematical and computational finance, communication and informationtheory. He has published in numerous journals including IEEE Transactions on Information Theory,MathematicsofOperationsResearch,MathematicalProgramming, IEEETransactionsonSignalProcessing,andIEEETransactionsonCommunicationTheory.

PaulLarcey,CambridgeInfrastructure,Finance,Risk&ResilienceGroupPaulLarceystudiedengineeringandmaterialsscienceattheUniversityofOxford,receivedhisMaster’sinconstructionengineeringattheUniversityofCambridge,andholdsanMBAinfinancefromImperialCollegeLondon.Hisearlycareerwasintheresearchofnovelceramichightemperaturesuperconductivityandfluidmechanics/rheology,eventuallymovingintoseniorcorporatemanagementroleswithglobalengineeringandconstructioncompaniesinvolvedinthesupplyandprovisionoflargescaleinfrastructureprojects.Hiscurrentresearch interests are related to the interactions between the risk perception of large project funding,networkcomplexity, security,and the increasing roleof resilience—physically, financially,andsocially—inmodernsociety.

Ning Lin, Assistant Professor, Civil and Environmental Engineering, PrincetonUniversityNingLinisanAssistantProfessorofCivilandEnvironmentalEngineeringatPrincetonUniversity.Lin’sresearchareas includenaturalhazardsandriskanalysis,windengineering,coastalengineering,andclimatechangeimpactandadaptation.Hercurrentprimaryfocusishurricaneriskanalysis.LinreceivedherPh.D.inCivilandEnvironmental Engineering from Princeton University in 2010. Before rejoining Princeton as an assistantprofessorin2012,sheconductedresearchintheDepartmentofEarth,AtmosphericandPlanetarySciencesatMITasaNOAAClimateandGlobalChangePostdoctoralFellow.

BobLitterman,ChairmanofRiskCommittee,KeposCapitalBobLittermanistheChairmanoftheRiskCommitteeandafoundingpartnerofKeposCapital,aNewYorkCitybasedsystematicglobalmacrofirm.PriortojoiningKeposCapitalin2010,Bobenjoyeda23-yearcareeratGoldman,Sachs&Co.,whereheservedinresearch,riskmanagement,investmentsandthoughtleadershiproles.HewasinductedintoRiskMagazine’sRiskManagementHallofFameandnamedthe2013RiskManageroftheYearbytheGlobalAssociationofRiskProfessionals.In2012,hewastheinauguralrecipientoftheS.DonaldSussmanFellowshipatMIT'sSloanSchoolofManagement.In2008,BobreceivedtheNicholasMolodovskyAwardfromtheCFAInstituteBoard.

GuyNordenson,ProfessorofStructuralEngineering&Architecture,PrincetonUniversityGuyNordensonisastructuralengineerandprofessoratPrincetonUniversity.RecentandcurrentprojectsincludetheexpansionoftheKimbellArtMuseuminFortWorth,theNationalMuseumofAfricanAmericanHistory andCulture inWashington,DC, and theMenilDrawing Institute inHouston.He led the researchprojectandco-wrotethebookOntheWater|PalisadeBay,whichservedasthe inspirationforthe2010MoMAexhibition“RisingCurrents.”In2013,hisresearchteamatPrincetonwasawardedamajorgrantbytheRockefellerFoundationtodevelop“StructuresofCoastalResilience”incollaborationwiththeUSACE.

Michael Oppenheimer, Albert G. Milbank Professor of Geosciences andInternationalAffairs,PrincetonUniversityMichaelOppenheimeristheAlbertG.MilbankProfessorofGeosciencesandInternationalAffairsatPrinceton.He is also the Director of the Program in Science, Technology and Environmental Policy at Princeton.Oppenheimer is a long-time participant in the Intergovernmental Panel on Climate Change (IPCC).Oppenheimer iscoeditorofthe journalClimaticChange. HeservesontheNewYorkCityClimateChangePanel.OppenheimerisaHeinzAwardwinnerandaFellowoftheAmericanAssociationfortheAdvancementofScience.

StathisTompaidis,Professor,UniversityofTexasatAustinStathisTompaidisisaprofessorattheInformation,RiskandOperationsManagementdepartment,andthedepartmentofFinanceattheMcCombsSchoolofBusinessatTheUniversityofTexasatAustin.Hisresearchfocusesonthedevelopmentofquantitativemethodsforsolvingcomplexbusinessproblems,especiallyintheareasofriskmanagement,derivativepricing,assetallocation,energyfinance,realestatefinance,andrealoptions.HehascollaboratedwithcompaniessuchasSchlumberger,Shell,andElectroPeru.Hisresearchhasappeared in journalssuchas JournalofFinance, JournalofFinancialEconomics,OperationsResearch,andManagementScience.

MichelleTuveson,FounderandExecutiveDirector,CambridgeCentreforRiskStudiesDr.MichelleTuveson isaFounderandExecutiveDirectorat theCambridgeCentre forRiskStudiesat theUniversity of Cambridge Judge Business School. She brings 20+ years of corporate experiencewithin thetechnologyandconsultingsectorstofurtherthedevelopmentofbetterriskmodelsforthefuture.SheleadstheCambridgeCROCouncil,chairstheCentre'sAnnualRiskSummitsandisanadvisoryboardmembertotheWorldEconomicForum'sGlobalRiskReport.ShehascontributedtotheFinancialTimesSpecialReportonRiskManagement.Heracademicresearchinterestsincludemodelingriskcultureandgovernancestructuresinorganizations.SheearneddegreesfromMITandUniversityofCambridge.

Venkat Venkatasubramanian, Samuel Ruben-Peter G. Viele Professor ofEngineering,Co-DirectorofCMSR,ColumbiaUniversityProfessor Venkatasubramanian’s research and teaching interests are in three areas: (1) risk modeling,analysis,andmanagementincomplexengineeredsystems,(2)“BigData”analyticsformolecularproductsdesignanddiscovery,and(3)design,controlandoptimizationthroughself-organizationincomplexadaptiveteleologicalsystems.HeiscitedwidelyintheseareasandhaswonseveralBestPaperPrizes.HeisaFellowofAIChE and a recipient of the Computing in Chemical Engineering award. He won the Shreve Award forOutstandingTeaching inChemicalEngineering fromPurdueUniversity threetimes.He isalsoanEditorofComputers&ChemicalEngineering.