Archive for April 17th, 2008

The need for systemic risk

Thursday, April 17th, 2008

To speak about systemic risks only makes sense when analyzing a large system, such as the international financial markets. The financial markets are the quintessential traders of risk, because risks from investments, macro- and micro-economic policy, technological innovation and behaviour of market participants is constantly assessed and priced. The existence of ...

Systemic Risk - Discussion by Alexander, Eatwell, Dhumale

Thursday, April 17th, 2008

In their book "Global Governance of Financial Systems" the authors try to define the various dimensions of Systemic Risk. The CMAP (click on the picture to see the full picture) outlines the main concepts that the authors introduce. Systemic risk is defined as... a negative externality that imposes costs on society ...