Dilip B. Madan

Dilip B. Madan is the Robert H. Smith School of Business Professor at the University of Maryland College Park. He holds PhDs in Economics (1971) and Mathematics (1975) from the same institution. His primary research focuses on Mathematical Finance, stochastic processes, and risk management with applications to financial derivatives and systemic risk.

Education:

• PhD in Economics, University of Maryland, 1971
• PhD in Mathematics, University of Maryland, 1975

Research Interests:

Professor Madan’s work addresses critical financial challenges including valuation of derivatives, risk allocation mechanisms, and regulatory capital requirements. He pioneered the use of Lévy processes in financial modeling and contributed foundational concepts in conic finance. His research bridges theoretical rigor with practical applications in risk management and market design.

Key Themes in Articles:

His publications emphasize the integration of stochastic processes (particularly Lévy processes) into financial modeling frameworks, exploring topics such as capital adequacy, socially acceptable risk metrics, and dynamic hedging strategies under non-Gaussian market conditions. Recent work introduces conic finance principles to address counterparty risk and systemic stability concerns.

Professional Roles:

• Consultant: Morgan Stanley, Caspian Capital LLC, FDIC
• Editorial Roles: Co-Editor of Mathematical Finance, Associate Editor of Quantitative Finance
• Leadership: Founding Member & Past President of the Bachelier Finance Society