In this seminar, Fabio Caccioli (University College London) reviews key contributions of complexity science to the study of systemic risk in financial systems. The seminar focuses on network models of financial contagion and various mechanisms of shock propagation, such as counterparty default risk and overlapping portfolios. Fabio highlights how the interconnectedness of financial institutions can amplify risk and discusses how standard risk management tools, which neglect these interactions, can increase systemic risk.
The seminar was hosted by Emilie Rosenlund Soysal (London Mathematical Laboratory) and James King (Science Practise).
