Situation on 30-th september, 2016 Resistance to shocks, or the so-called RtS rating, measures the ability to withstand the turbulence of markets, corporations, or systems thereof. The table below reports the RtS ratings of a series of markets, as well as market segments, such as pharma, automotive, O&G, etc. It is interesting to note that … More Global Finance and Markets – Where are the Vulnerabilities
Funds are composed of ensembles of securities. A schematic of a Complexity Map of a system of funds is indicated below. The map reveals that, for example, fund 10 is the hub of the system and of the 8 securities composing it, number 6 and 8 have the biggest footprint in terms of its … More Analysis of Funds – A Systemic Approach
When facing large doses of uncertainty and turbulence risk model-based methods of managing uncertainty are not the best alternative. One thing is to manage an assembly line producing, for example, computer chips, another is to run a company in a globalized, turbulent, chaotic, non-stationary and shock-punctuated economy. Some things can be accomplished via mathematical modeling … More What Lies Beyond Risk Management?
How to avoid the next (worse) crisis? Much has been written about the global economic crisis, its causes and its consequences. We could say that to a large extent we actually understand what has happened and why. The point, however, is to look to the future and to learn from past mistakes. In particular, we … More Democratizing Ratings
Why are ratings so unreliable? In an article which appeared on 19-th July, 2012 on Thomson Reuters News & Insight, one reads: “This is how the role of the credit rating agencies was described by the Financial Crisis Enquiry Commission in January 2011: The rating agencies were essential to the smooth functioning of the mortgage-backed … More Conventional Ratings: Why The Abysmal Performance?
The EU28 Resistance-to-Shocks (RtS) ratings. To navigate the Complexity Maps, click on the corresponding icon. Hover and click the mouse pointer over the squares on the map. The resilience (robustness) ranking is as … More Resistance-to-Shock Ratings of EU Member States
Quantitative Resilience Management 