Jón Danielsson

Jón Danielsson is a Reader in Finance at the London School of Economics (LSE) and one of the two Directors of the Centre. He holds a PhD in economics of financial markets from Duke University (1991) and has established himself as a leading authority on risk forecasting and financial regulation. His work bridges academic research and practical policy application, with significant contributions to understanding how economic policy affects financial stability.

Danielsson's research spans systemic risk, artificial intelligence applications in finance, financial risk forecasting, and regulatory frameworks. He has pioneered work on how AI transforms financial stability, identifying both risks and opportunities. His research shows how risk models often fail during extreme events and how financial authorities can better respond to emerging threats. He has developed innovative frameworks for understanding the relationship between perceived risk and actual risk, highlighting the limitations of conventional risk measurement tools.

His publications reveal a clear trend toward examining the intersection of artificial intelligence and financial stability, with increasing focus on systemic threats beyond traditional regulatory frameworks. Danielsson's work consistently challenges conventional wisdom, arguing that low volatility often precedes financial crises and that current regulatory approaches may create dangerous monocultures in risk management.

• Financial Times Best Book of 2022 (The Illusion of Control)

Danielsson has extensive experience bridging academia and policy, having worked for the Bank of Japan and the International Monetary Fund. His research has significant practical implications, regularly informing central bank policies and financial regulations. He maintains an active research blog (Models and Risk) and his work is frequently cited in major media outlets including the BBC, Financial Times, The New York Times, and The Wall Street Journal.

Danielsson leads the Risk Research initiative at LSE, which focuses on developing more robust approaches to financial risk measurement and regulation. His work emphasizes the importance of understanding endogenous risk - how the financial system itself generates risk through the interactions of market participants and regulatory frameworks.