Related papers: Regshock: Interactive Visual Analytics of Systemic…
We analyze the possibility of reduction of systemic risk in financial markets through Pigouvian taxation of financial institutions which is used to support the rescue fund. We introduce the concept of the cascade risk with a clear…
The purpose of this research article is to discover how the econophysics analysis can complement the econometrics models in application to the risk management in the central banks and financial institutions, operating within the nonlinear…
In the aftermath of the financial crisis, supervisory authorities have considerably altered the mode of operation of financial stress testing. Despite these efforts, significant concerns and extensive criticism have been raised by market…
As impressively shown by the financial crisis in 2007/08, contagion effects in financial networks harbor a great threat for the stability of the entire system. Without sufficient capital requirements for banks and other financial…
Restructuring the regional industrial structure (RIS) has the potential to halt economic recession and achieve revitalization. Understanding the current status and dynamics of RIS will greatly assist in studying and evaluating the current…
We present a network-based framework for simulating systemic risk that considers shock propagation in banking systems. In particular, the framework allows the modeller to reflect a top-down framework where a shock to one bank in the system…
Financial markets are exposed to systemic risk, the risk that a substantial fraction of the system ceases to function and collapses. Systemic risk can propagate through different mechanisms and channels of contagion. One important form of…
Scoring systems are widely adopted in medical applications for their inherent simplicity and transparency, particularly for classification tasks involving tabular data. In this work, we introduce RegScore, a novel, sparse, and interpretable…
This paper introduces a novel methodology for index return forecasting, blending highly correlated stock prices, advanced deep learning techniques, and intricate factor integration. Departing from conventional cap-weighted approaches, our…
The proliferation of financial misinformation poses a severe threat to market stability and investor trust, misleading market behavior and creating critical information asymmetry. Detecting such misleading narratives is inherently…
Today, there is a plethora of software security tools employing visualizations that enable the creation of useful and effective interactive security analyst dashboards. Such dashboards can assist the analyst to understand the data at hand…
Financial systems run nonstop and must stay reliable even during cyber incidents. Modern attacks move across many services (apps, APIs, identity, payment rails), so defenders must make a sequence of actions under time pressure. Most…
Assessing the stability of economic systems is a fundamental research focus in economics, that has become increasingly interdisciplinary in the currently troubled economic situation. In particular, much attention has been devoted to the…
Cyber risk assessment is a fundamental activity for enhancing the protection of an organization, identifying and evaluating the exposure to cyber threats. Currently, this activity is carried out mainly manually and the identification and…
The negative externalities from an individual bank failure to the whole system can be huge. One of the key purposes of bank regulation is to internalize the social costs of potential bank failures via capital charges. This study proposes a…
The theory of multilayer networks is in its early stages, and its development provides vital methods for understanding complex systems. Multilayer networks, in their multiplex form, have been introduced within the last three years to…
We show that any objective risk measurement algorithm mandated by central banks for regulated financial entities will result in more risk being taken on by those financial entities than would otherwise be the case. Furthermore, the risks…
Modern society heavily relies on strongly connected, socio-technical systems. As a result, distinct risks threatening the operation of individual systems can no longer be treated in isolation. Consequently, risk experts are actively seeking…
Accounting fraud is a global concern representing a significant threat to the financial system stability due to the resulting diminishing of the market confidence and trust of regulatory authorities. Several tricks can be used to commit…
Integrated simulation models are emerging as an alternative for analyzing large-scale interdependent infrastructure networks due to their modeling advantages over traditional interdependency models. This paper presents an open-source…