Here, I present and discuss a "10-by-10-by-10" network-based approach to monitoring systemic financial risk. Under this … of cash flow, allowing regulators to assess risk magnitudes in terms of stresses to both economic values and also …

their risk assessments and outcomes to those from a simple methodology that relies on publicly available market data and … market data; (iii) This discrepancy arises due to the reliance on regulatory risk weights in determining required levels of … capital once stress-test losses are taken into account. In particular, the continued reliance on regulatory risk weights in …

risk. These connections lead to two different network structures. In a clustered network groups of financial institutions … expectations are low, they do not roll over the debt and there is systemic risk in that all institutions are early liquidated. We …

We propose several econometric measures of systemic risk to capture the interconnectedness among the monthly returns of … find that all four sectors have become highly interrelated over the past decade, increasing the level of systemic risk in … of market dislocation, and systemic risk arises from a complex and dynamic network of relationships among hedge funds …

, and near-frictionless refinancing opportunities---led to vastly increased systemic risk in the financial system …

We study risk management in financial institutions using data on hedging of interest rate and foreign exchange risk. We … find strong evidence that institutions with higher net worth hedge more, controlling for risk exposures, both across …

Over the last twenty years, the consensus view of systemic risk in the financial system that emerged in response to the … facing financial institutions. The dramatic rise of modern risk management has changed how the risks of financial … institutions are measured and how these institutions are managed. However, modern risk management is not without weaknesses that …

This paper examines how governance and risk management affect risk-taking in banks. It distinguishes between good risks … such a reward. A well-governed bank takes the amount of risk that maximizes shareholder wealth subject to constraints … cost effective to do so. The role of risk management in such a bank is not to reduce the bank's total risk per se. It is to …

Current practice largely follows restrictive approaches to market risk measurement, such as historical simulation or … produce more accurate risk assessments, treating both portfolio-level and asset-level analysis. Asset-level analysis is … particularly challenging because the demands of real-world risk management in financial institutions - in particular, real …

explains how the distribution of bank leverage and risk exposures contributes to a form of systemic risk. We compute bank … injections. We apply the framework to European banks vulnerable to sovereign risk in 2010 and 2011 …