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Cascading failures are a critical vulnerability of complex information or infrastructure networks. Here we investigate the properties of load-based cascading failures in real and synthetic spatially-embedded network structures, and propose…

Physics and Society · Physics 2017-09-21 Alaa Moussawi , Noemi Derzsy , Xin Lin , Boleslaw K. Szymanski , Gyorgy Korniss

Networked systems are susceptible to cascading failures, where the failure of an initial set of nodes propagates through the network, often leading to system-wide failures. In this work, we propose a multiplex flow network model to study…

Systems and Control · Electrical Eng. & Systems 2025-04-02 Orkun İrsoy , Osman Yağan

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

The credit crisis roiling the world's financial markets will likely take years and entire careers to fully understand and analyze. A short empirical investigation of the current trends, however, demonstrates that the losses in certain…

Statistical Finance · Quantitative Finance 2015-05-13 Reginald D. Smith

We study the effectiveness of recovery strategies for a dynamic model of failure spreading in networks. These strategies control the distribution of resources based on information about the current network state and network topology. In…

Physics and Society · Physics 2009-11-13 Lubos Buzna , Karsten Peters , Hendrik Ammoser , Christian Kuehnert , Dirk Helbing

Corporate insolvency can have a devastating effect on the economy. With an increasing number of companies making expansion overseas to capitalize on foreign resources, a multinational corporate bankruptcy can disrupt the world's financial…

Statistical Finance · Quantitative Finance 2018-02-16 Jacky C. K. Chow

In a network, a local disturbance can propagate and eventually cause a substantial part of the system to fail, in cascade events that are easy to conceptualize but extraordinarily difficult to predict. Here, we develop a statistical…

Physics and Society · Physics 2017-02-07 Yang Yang , Takashi Nishikawa , Adilson E. Motter

This paper studies the consequences of a human-initiated targeted attack on the national electric power system. We consider two kinds of attacks: ($i$) an attack by an adversary that uses a tactical weapon and destroys a large part of the…

Systems and Control · Electrical Eng. & Systems 2022-09-28 Rounak Meyur

Cascading failures constitute an important vulnerability of interconnected systems. Here we focus on the study of such failures on networks in which the connectivity of nodes is constrained by geographical distance. Specifically, we use…

Physics and Society · Physics 2014-01-08 Andrea Asztalos , Sameet Sreenivasan , Boleslaw K. Szymanski , Gyorgy Korniss

The problem of cascading failures in cyber-physical systems is drawing much attention in lieu of different network models for a diverse range of applications. While many analytic results have been reported for the case of large networks,…

Social and Information Networks · Computer Science 2014-10-15 Ali Eslami , Chuan Huang , Junshan Zhang , Shuguang Cui

We consider a general tractable model for default contagion and systemic risk in a heterogeneous financial network, subject to an exogenous macroeconomic shock. We show that, under some regularity assumptions, the default cascade model…

Risk Management · Quantitative Finance 2021-04-02 Hamed Amini , Zhongyuan Cao , Agnes Sulem

Many systems, ranging from engineering to medical to societal, can only be properly characterized by multiple interdependent networks whose normal functioning depends on one another. Failure of a fraction of nodes in one network may lead to…

Disordered Systems and Neural Networks · Physics 2015-05-13 Sergey V. Buldyrev , Roni Parshani , Gerald Paul , H. Eugene Stanley , Shlomo Havlin

Higher variability in grid conditions, resulting from growing renewable penetration and increased incidence of extreme weather events, has increased the difficulty of screening for scenarios that may lead to catastrophic cascading failures.…

Systems and Control · Electrical Eng. & Systems 2024-03-25 Joe Gorka , Tim Hsu , Wenting Li , Yury Maximov , Line Roald

We develop a systemic risk framework to explore cascading systemic failures in networked control systems. A time-delayed version of the vehicle platooning problem is used as a benchmark to study the interplay among network connectivity,…

Systems and Control · Electrical Eng. & Systems 2022-02-15 Guangyi Liu , Christoforos Somarakis , Nader Motee

We develop a framework for studying and quantifying the risk of cascading failures in time-delay consensus networks, motivated by a team of agents attempting temporal rendezvous under stochastic disturbances and communication delays. To…

Systems and Control · Electrical Eng. & Systems 2026-04-08 Guangyi Liu , Vivek Pandey , Christoforos Somarakis , Nader Motee

Reliable functioning of infrastructure networks is essential for our modern society. Cascading failures are the cause of most large-scale network outages. Although cascading failures often exhibit dynamical transients, the modeling of…

Adaptation and Self-Organizing Systems · Physics 2020-08-18 Benjamin Schäfer , Dirk Witthaut , Marc Timme , Vito Latora

We study cascading failures in networks using a dynamical flow model based on simple conservation and distribution laws to investigate the impact of transient dynamics caused by the rebalancing of loads after an initial network failure…

Physics and Society · Physics 2010-05-04 Ingve Simonsen , Lubos Buzna , Karsten Peters , Stefan Bornholdt , Dirk Helbing

Inspired by the bankruptcy of Lehman Brothers and its consequences on the global financial system, we develop a simple model in which the Lehman default event is quantified as having an almost immediate effect in worsening the credit…

Risk Management · Quantitative Finance 2011-10-18 Paweł Sieczka , Didier Sornette , Janusz A. Hołyst

In today's global economy, supply chain (SC) entities have become increasingly interconnected with demand and supply relationships due to the need for strategic outsourcing. Such interdependence among firms not only increases efficiency but…

Physics and Society · Physics 2020-11-16 Qihui Yang , Caterina Scoglio , Don Gruenbacher

In complex networks, the failure of one or very few nodes may cause cascading failures. When this dynamical process stops in steady state, the size of the giant component formed by remaining un-failed nodes can be used to measure the…

Social and Information Networks · Computer Science 2015-06-30 Junbiao Liu , Xinyu Jin , Lurong Jiang , Yongxiang Xia , Bo Ouyang , Fang Dong , Yicong Lang , Wenping Zhang