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Systemic risk refers to the risk that the financial system is susceptible to failures due to the characteristics of the system itself. The tremendous cost of systemic risk requires the design and implementation of tools for the efficient…

Risk Management · Quantitative Finance 2021-04-06 Zachary Feinstein , Birgit Rudloff , Stefan Weber

We provide a framework for detecting relevant insurance companies in a systemic risk perspective. Among the alternative methodologies for measuring systemic risk, we propose a complex network approach where insurers are linked to form a…

Risk Management · Quantitative Finance 2020-11-24 Gian Paolo Clemente , Alessandra Cornaro

Despite the tremendous advances achieved over the past years by deep learning techniques, the latest risk prediction models for industrial applications still rely on highly handtuned stage-wised statistical learning tools, such as gradient…

Machine Learning · Computer Science 2023-08-08 Yancheng Liang , Jiajie Zhang , Hui Li , Xiaochen Liu , Yi Hu , Yong Wu , Jinyao Zhang , Yongyan Liu , Yi Wu

The growing instability of both global and domestic economic environments has increased the risk of financial distress at the household level. However, traditional econometric models often rely on delayed and aggregated data, limiting their…

We survey systemic risks to financial markets and present a high-level description of an algorithm that measures systemic risk in terms of coupled networks.

Risk Management · Quantitative Finance 2013-11-18 Abhijnan Rej

The DebtRank algorithm has been increasingly investigated as a method to estimate the impact of shocks in financial networks, as it overcomes the limitations of the traditional default-cascade approaches. Here we formulate a dynamical…

Risk Management · Quantitative Finance 2018-11-21 Marco Bardoscia , Stefano Battiston , Fabio Caccioli , Guido Caldarelli

The aim of this paper is to study a new methodological framework for systemic risk measures by applying deep learning method as a tool to compute the optimal strategy of capital allocations. Under this new framework, systemic risk measures…

Mathematical Finance · Quantitative Finance 2022-07-05 Yichen Feng , Ming Min , Jean-Pierre Fouque

E-commerce risk management requires aggregating diverse, deeply embedded web data through multi-step, stateful interactions, which traditional scraping methods and most existing Graphical User Interface (GUI) agents cannot handle. These…

Artificial Intelligence · Computer Science 2026-04-14 Renqi Chen , Zeyin Tao , Jianming Guo , Jingzhe Zhu , Yiheng Peng , Qingqing Sun , Tianyi Zhang , Shuai Chen

The fragility of financial systems was starkly demonstrated in early 2023 through a cascade of major bank failures in the United States, including the second, third, and fourth largest collapses in the US history. The highly interdependent…

Risk Management · Quantitative Finance 2024-11-19 Kamil Fortuna , Janusz Szwabiński

Bank credit rating classifies banks into different levels based on publicly disclosed and internal information, serving as an important input in financial risk management. However, domain experts have a vague idea of exploring and comparing…

Machine Learning · Computer Science 2021-08-09 Qiangqiang Liu , Quan Li , Zhihua Zhu , Tangzhi Ye , Xiaojuan Ma

Systemic financial risk refers to the simultaneous failure or destabilization of multiple financial institutions, often triggered by contagion mechanisms or common exposures to shocks. In this paper, we present a dynamical model of bank…

Dynamical Systems · Mathematics 2026-03-31 Marco Ioffredi , Stefano Marmi , Matteo Tanzi

A major impact of globalization has been the information flow across the financial markets rendering them vulnerable to financial contagion. Research has focused on network analysis techniques to understand the extent and nature of such…

Statistical Finance · Quantitative Finance 2019-11-15 Sayantan Banerjee , Kousik Guhathakurta

The policy objective of safeguarding financial stability has stimulated a wave of research on systemic risk analytics, yet it still faces challenges in measurability. This paper models systemic risk by tapping into expert knowledge of…

General Finance · Quantitative Finance 2014-12-30 Jozsef Mezei , Peter Sarlin

Modelling how a shock propagates in a temporal network and how the system relaxes back to equilibrium is challenging but important in many applications, such as financial systemic risk. Most studies so far have focused on shocks hitting a…

General Economics · Economics 2024-07-15 Fabrizio Lillo , Giorgio Rizzini

In recent years, it has become apparent that an isolated microprudential approach to capital adequacy requirements of individual institutions is insufficient. It can increase the homogeneity of the financial system and ultimately the cost…

Risk Management · Quantitative Finance 2023-11-27 Jana Hlavinova , Birgit Rudloff , Alexander Smirnow

Assessing the resilience of the economy requires accounting for its intrinsic multi-layer nature, by assessing for instance how disruptions at the firm level spread through the production network and propagate to the banking sector. Methods…

Physics and Society · Physics 2026-03-11 Soumen Majhi , Anna Mancini , Giulio Cimini

Cascading failures represent a fundamental threat to the integrity of complex systems, often precipitating a comprehensive collapse across diverse infrastructures and financial networks. This research articulates a robust and pragmatic…

Adaptation and Self-Organizing Systems · Physics 2024-06-28 Karan Singh , V. K. Chandrasekar , D. V. Senthilkumar

The assessment of highly-risky situations at road intersections have been recently revealed as an important research topic within the context of the automotive industry. In this paper we shall introduce a novel approach to compute risk…

Neural and Evolutionary Computing · Computer Science 2007-05-23 Alejandro Chinea Manrique De Lara , Michel Parent

Success of any IT industry depends on the success rate of their projects, which in turn depends on several factors such as cost, time, and availability of resources. These factors formulate the risk areas, which needs to be addressed in a…

Software Engineering · Computer Science 2012-10-05 Raghavi K Bhujang , Suma. V

While the coronavirus spreads, governments are attempting to reduce contagion rates at the expense of negative economic effects. Market expectations plummeted, foreshadowing the risk of a global economic crisis and mass unemployment.…

General Economics · Economics 2020-04-28 Fabian Stephany , Niklas Stoehr , Philipp Darius , Leonie Neuhäuser , Ole Teutloff , Fabian Braesemann