We are delighted to announce that our FNAtics Adam Csabay, Kimmo Soramäki, and Ivana Ruffini have been invited to contribute to Risk.net’s newest title ‘Data Science in Economics and Finance for Decision Makers’.

This in depth guide to the future of data and modelling provides the latest insights on data-science tools and methods. A must-read as digital data becomes increasingly essential to make informed and sustainable choices. They will be collaborating with our academic partners Mikhail Oet from Northeastern University and Tuomas Takko from Aalto University to contribute a chapter on Network Analytics and Stress Testing.

Read an excerpt of the chapter below:

‘Prudential stress testing in financial networks is important because it gives organizations insight and knowledge about unobservable sources and critical means of controlling systemic risk that is otherwise not known to them. The key sources of unobservable systemic risk include the indirect network effects of the behavior and choices of people and institutions and the markets that they operate in. These can be measured by understanding their interconnectedness from structured and unstructured data sets. The key elements of control are the mechanisms by which systemic effects manifest in financial networks: default contagion, distress contagion, common assets contagion, and funding liquidity contagion. The key types of prudential questions that organizations can answer shed light on perturbations in networks centering on 1) microprudential (organizational) and macroprudential (systemic) risks. The microprudential stress testing addresses risk from credit, operational, market, or liquidity activities. The macroprudential stress testing addresses risks from systemic imbalances in risk, credit, operational, market, interest-rate, liquidity and structure concentrations, connectivity, and contagion. This chapter makes two contributions. First, we provide a taxonomy of organizational problems facing organizations operating in financial networks. Second, we provide a comprehensive approach to the information system design addressing stress testing in networks…’

To read the rest of the chapter, find Risk.net’s complete title here: Data Science in Economics and Finance for Decision Makers.

 

More News

The CBDC Broadcast Session #5

CBDC Motivations, Challenges and Design Choices- A perspective from Latin America   Wednesday 18th May 2022, 14:00 (BST) There are many motivations for rolling out a CBDC, from achieving higher financial inclusion and higher transactional efficiency to preserving monetary sovereignty by compensating for the declining use of cash and by countering the entrance of new […]

The FMI Broadcast

About the series   The payments and FMI landscape are rapidly evolving as new technologies, digital currencies, and disrupters emerge. FMIs and their members must understand the impact of these changes to safely ensure financial and economic stability. Following on from the success of FNA’s monthly CBDC Broadcast, The FMI Broadcast will follow a similar […]

Case Study: UK Finance

UK Finance quantifies potential improvements to liquidity and risk reduction in the CHAPS payment system through FNA’s payment optimization and simulation technology.   Introduction   The Clearing House Automated Payments System (CHAPS) is one of the largest high-value payment systems in the world, processing an average daily value of over £360 billion. Clearing participants, such […]
Copyright FNA © 2022 | Privacy Policy