Basel III regulation intent is to increase the resiliency of banks through effective risk management practices that can … reduce significant idiosyncratic operational losses. A systemic risk event that leads to significant losses in a bank holding … are evident in human error, fraud, and legal expenses that are aligned to systemic operational risk. The occurrences of …

process efficiency, and counterparty and credit risk management. Larger social benefits, including the monitoring of systemic … financial risk, are achievable if it becomes the accepted universal standard for legal entity identification. Our interviews …

We address the paradox that financial innovations aimed at risk-sharing appear to have made the world riskier … liquid assets. When risk-sharing is primitive, agents self-hedge and hold more liquid assets; this buffers aggregate risks …, resulting in few correlated failures compared to when there is greater risk sharing. We apply this insight to build a model of a …

Diversification practices by banks affect their own risk of failing and the risk of the banking system as a whole … (systemic risk). A seminal theoretical work has shown that linear diversification can reduce the risk of a bank failing, but at … the cost of increasing systemic risk. Later, a follow-up study showed that a particular strategy of securitization with …

This paper develops and implements an equilibrium model of systemic risk. The model derives a systemic risk measure …

Systemic risk, in a complex system with several interrelated variables, such as a financial market, is quantifiable … distribution function can provide a full quantification of risk and stress propagation in the system. However, multivariate … distributions, discussing their estimation from data and proposing novel measures for stress impact and systemic risk in systems …

risk. Recent theoretical and empirical work have addressed this problem. We argue, from a theoretical perspective, that … this controversy ultimately depends on how risk is assessed or measured. In particular, we observe that when one talks … about random losses (risk) there are two intertwined approaches. On the one hand, one can fix the loss level and ask with …