Systemic Risk Emerging from Interconnections: The Case of Financial Systems

Poledna S, Rovenskaya E, Dieckmann U ORCID: https://orcid.org/0000-0001-7089-0393, Hochrainer-Stigler S, & Linkov I (2020). Systemic Risk Emerging from Interconnections: The Case of Financial Systems. In: Systemic Thinking for Policy Making: The Potential of Systems Analysis for Addressing Global Policy Challenges in the 21st Century. pp. 123-132 Paris, France: New Approaches to Economic Challenges, OECD Publishing. ISBN 978-92-64-49456-5 DOI:10.1787/879c4f7a-en.

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Abstract

Approaches to analysing and managing the potential for a threat or hazard to propagate disruptions or losses to multiple connected parts of a complex system are reviewed, and ways IIASA and OECD could enhance their analytical capabilities and rigour of policy advice on systemic financial risk are outlined. IIASA has quantitative methods to measure, model, and manage systemic risk of financial systems using network theory and agent-based modelling. OECD looks into how to operationalise the concept of resilience to systemic risk to give policymakers an effective and efficient resilience management framework. IIASA’s methods can inform and enhance OECD’s framework by making available simple and transparent systemic risk indicators that can be monitored in real-time, as well as tools to test alternative policy interventions to reduce systemic risk. Approaches and models developed to deal with financial systemic risk may also be useful in other networked systems, for example, supply chains.

Item Type: Book Section
Research Programs: Advanced Systems Analysis (ASA)
Evolution and Ecology (EEP)
Risk & Resilience (RISK)
Depositing User: Luke Kirwan
Date Deposited: 23 Mar 2020 08:55
Last Modified: 23 Mar 2020 08:55
URI: http://pure.iiasa.ac.at/16382

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