Systemic Risk

Systemic cyber/in/security – From risk to uncertainty management in the digital realm

by Myriam Dunn Cavelty

in: Risk Dialogue Magazine Swiss Re, September 2011

Recent events have given the impression that cyber incidents are becoming more frequent, more organised and more... more Recent events have given the impression that cyber incidents are becoming more frequent, more organised and more costly in the damage that they inflict. Yet, while low-level micro disturbances are an everyday reality, the world has yet to see a cyber incident of systemic proportions. Establishing the likelihood of such an occurrence, however, is impossible. Systemic cyber-risks are unpredictable and incalculable due to the uncertainty surrounding them. The complexity of the socio-technical environment that they co-create makes traditional linear risk management approaches lose their meaning. This article argues that rather than trying to establish control over something that we cannot fully grasp, we need to learn how to embrace uncertainty when dealing with the digital realm. This implies a focus on dialogue and information exchange to increase situational awareness, a focus on strengthening technical and social resilience as well as sustained efforts to nurture a fault tolerant political culture that accepts the possibility of failure and lives with a certain and inevitable degree of insecurity.

Systemic risk in financial systems

by Larry Eisenberg

Destabilizing properties of a VaR or probability-of-ruin constraint when variances may be infinite

by Larry Eisenberg

Systemic risk in financial systems

by Larry Eisenberg

VaR, Probability-of-Ruin and Their Consequences for Normal Risks

by Larry Eisenberg

Predatory trading and risk minimisation: how to (b)eat the competition

by Anita Mehta

Propuesta metodológica para el cálculo del riesgo sistémico financiero en estudios de Historia Económica. Aplicación para el caso de la banca libre en Antioquia, 1888

by Javier Mejía Cubillos

This paper proposes a methodology to calculate the systemic risk in historical research, understanding that the... more This paper proposes a methodology to calculate the systemic risk in historical research, understanding that the characteristics of non modern financial systems and the availability of information do not enable the use of recent techniques of measuring financial risk. I propose a method of simple application and scarce information requirements, using the degree of leverage as an approximation of the individual risk, and the network theory to determine the allocation of individual risks throughout the system. The methodology is especially useful for studying the banking systems in early corporatizing periods. After been exposed the methodology, which takes as its central axis the shareholders, and the property as base linkages between institutions, it is mentioned its strengths and weaknesses; being, finally, tested in an application for the free banking experience in Antioquia.

Foresight, Epistemic Reliability and the Systematic Underestimation of Risk

by Joshua Miller