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This paper analyses the risk factors around investing in global supply chain infrastructure: the energy market, investor sentiment, and global shipping costs. It presents portfolio strategies associated with dynamic risks. A time-varying…

Econometrics · Economics 2025-08-08 Haibo Wang

Evaluation of systemic risk in networks of financial institutions in general requires information of inter-institution financial exposures. In the framework of Debt Rank algorithm, we introduce an approximate method of systemic risk…

Risk Management · Quantitative Finance 2021-04-14 Sebastian M. Krause , Hrvoje Štefančić , Vinko Zlatić , Guido Caldarelli

We provide an overview of the relationship between financial networks and systemic risk. We present a taxonomy of different types of systemic risk, differentiating between direct externalities between financial organizations (e.g.,…

Risk Management · Quantitative Finance 2020-12-24 Matthew O. Jackson , Agathe Pernoud

Motivated by the recently experienced systemic shocks (the COVID-19 pandemic and the full-fledged Russia's war of aggression against Ukraine) - that have created new forms of uncertainties to our supplies - this paper explores the supply…

General Economics · Economics 2024-05-07 d'Artis Kancs

We address a fundamental problem that is systematically encountered when modeling complex systems: the limitedness of the information available. In the case of economic and financial networks, privacy issues severely limit the information…

Physics and Society · Physics 2015-12-07 Giulio Cimini , Tiziano Squartini , Diego Garlaschelli , Andrea Gabrielli

Economic interdependencies have become increasingly present in globalized production, financial and trade systems. While establishing interdependencies among economic agents is crucial for the production of complex products, they may also…

Physics and Society · Physics 2019-12-23 Aymeric Vié , Alfredo J. Morales

We consider the problem of risk diversification in complex networks. Nodes represent e.g. financial actors, whereas weighted links represent e.g. financial obligations (credits/debts). Each node has a risk to fail because of losses…

Physics and Society · Physics 2016-04-27 Rebekka Burkholz , Antonios Garas , Frank Schweitzer

We propose a generic system model for a special category of interdependent networks, demand-supply networks, in which the demand and the supply nodes are associated with heterogeneous loads and resources, respectively. Our model sheds a…

Networking and Internet Architecture · Computer Science 2019-11-11 Seyyedali Hosseinalipour , Jiayu Mao , Do Young Eun , Huaiyu Dai

For centuries, national economies created wealth by engaging in international trade and production. The resulting international supply networks not only increase wealth for countries, but also create systemic risk: economic shocks,…

General Economics · Economics 2021-12-02 Abhijit Chakraborty , Tobias Reisch , Christian Diem , Stefan Thurner

The right performance of a supply chain depends on the pattern of relationships among firms. Although there is not a general consensus among researchers yet, many studies point that scale-free topologies, where few highly related firms are…

Social and Information Networks · Computer Science 2016-12-01 Juan M. Hernández , Carmen Pedroza

This work studies how to preemptively increase the resilience of a network by means of time-varying topological actuation. To do this, we focus on linear dynamical systems that are compatible with a given network, and consider policies that…

Optimization and Control · Mathematics 2026-02-24 Fei Chen , Jorge Cortés , Sonia Martínez

The design of robust supply and distribution systems is one of the fundamental challenges at the interface of network science and logistics. Given the multitude of performance criteria, real-world constraints, and external influences acting…

Social and Information Networks · Computer Science 2021-12-07 Alexey Lyutov , Yilmaz Uygun , Marc-Thorsten Hütt

We model the production of complex goods in a large supply network. Each firm sources several essential inputs through relationships with other firms. Individual supply relationships are at risk of idiosyncratic failure, which threatens to…

Theoretical Economics · Economics 2023-02-28 Matthew Elliott , Benjamin Golub , Matthew V. Leduc

Supply chains' increasing globalization and complexity have recently produced unpredictable disruptions, ripple effects, and cascading resulting failures. Proposed practices for managing these concerns include the advanced field of forward…

Data Analysis, Statistics and Probability · Physics 2025-11-27 Madison Smith , Michael Gaiewski , Sam Dulin , Laurel Williams , Jeffrey Keisler , Andrew Jin , Igor Linkov

Recent events such as the Heparin tragedy, in which patients lost their lives due to tainted pharmaceuticals, highlight the necessity for supply chain designers and planners to consider the risk of even low probability disruptions in supply…

Optimization and Control · Mathematics 2012-05-04 AliReza Madadi , Mary E. Kurz , Scott J. Mason , Kevin M. Taaffe

Recent studies of attacks on complex networks suggest that small initial breakdowns can lead to global cascades of overload failures in communication, economic trading, and supply-transportation systems, considering the defense methods is…

Disordered Systems and Neural Networks · Physics 2007-05-23 Yukio Hayashi , Toshiyuki Miyazaki

This paper studies systemic-risk connectedness in the European insurance sector at three levels of granularity: across major segments of financial markets, across insurance subsectors, and across individual insurance companies. Using a…

Computational Finance · Quantitative Finance 2026-05-12 Giovanni Bonaccolto , Nicola Borri , Andrea Consiglio , Giorgio Di Giorgio

The structure of the network has great impact on its traffic dynamics. Most of the real world networks follow the heterogeneous structure and exhibit scale-free feature. In scale-free network, a new node prefers to connect with hub nodes…

Networking and Internet Architecture · Computer Science 2019-01-17 Suchi Kumari , Abhishek Saroha , Anurag Singh

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

While new forms of attacks are developed every day to compromise essential infrastructures, service providers are also expected to develop strategies to mitigate the risk of extreme failures. In this context, tools of Network Science have…

Physics and Society · Physics 2015-03-13 V. H. P. Louzada , F. Daolio , H. J. Herrmann , M. Tomassini