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Tracking contagion risk could help contain financial crises – Global Risk Regulator

Simudyne has been featured in Global Risk Regulator. Access the full article here.


As balance sheets become more complicated, the web of interconnectivity has become increasingly tangled. In a globalized world, recognizing that the financial system is a complex adaptive system allows us to account for the types of dynamic experienced during the crisis.

Many regulators acknowledge they need better ways of assessing systemic risk as well as the stability or lack thereof of the financial system. One of the biggest obstacles is the inability to see through the opacity of complicated financial networks. Almost all regulators monitoring the health of our financial system find this very, very difficult. The tools and approaches they need are quite new and are still in the process of being put into practice

An example of one regulator that’s headed in the right direction is the Bank of England. They are putting financial networks at the heart of their thinking rather than individual institutions as isolated nodes. They recognise that institutions are part of a larger system, the properties of which emerge from the interaction of its constituent parts.”

Chloe Hibbert