Systemic Risk in the Financial System: Insights from Network Science

Systemic Risk in the Financial System: Insights from Network Science

Systemic Risk in the Financial System: Insights from Network Science looks at systemic risk from the perspective of network structure, and the connectivity links between actors in the financial system.  It notes that network structure may have played a role in the financial crisis in three important ways:  that financial markets may have lacked robustness; that the pattern of network links may have made the system subject to contagion; and that a lack of diversity in networks may have impaired their resilience, or ability to adapt.

Hammond notes that comprehensive efforts to understand systemic risk and undertake reform of the financial system should focus not only on financial actors themselves, but also on the ways in which they are connected. The structure of financial networks shapes the systems' dynamics in important ways, and understanding this structure can provide insights into how to prevent future crises.

Pew is no longer active in this line of work, but for more information, visit the main Pew Financial Reform page.

Spotlight on Mental Health

Composite image of modern city network communication concept

Learn the Basics of Broadband from Our Limited Series

Sign up for our four-week email course on Broadband Basics

Quick View

How does broadband internet reach our homes, phones, and tablets? What kind of infrastructure connects us all together? What are the major barriers to broadband access for American communities?

Pills illustration
Pills illustration

What Is Antibiotic Resistance—and How Can We Fight It?

Sign up for our four-week email series The Race Against Resistance.

Quick View

Antibiotic-resistant bacteria, also known as “superbugs,” are a major threat to modern medicine. But how does resistance work, and what can we do to slow the spread? Read personal stories, expert accounts, and more for the answers to those questions in our four-week email series: Slowing Superbugs.

Explore Pew’s new and improved
Fiscal 50 interactive

Your state's stats are more accessible than ever with our new and improved Fiscal 50 interactive:

  • Maps, trends, and customizable charts
  • 50-state rankings
  • Analysis of what it all means
  • Shareable graphics and downloadable data
  • Proven fiscal policy strategies


Welcome to the new Fiscal 50

Key changes include:

  • State pages that help you keep track of trends in your home state and provide national and regional context.
  • Interactive indicator pages with highly customizable and shareable data visualizations.
  • A Budget Threads feature that offers Pew’s read on the latest state fiscal news.

Learn more about the new and improved Fiscal 50.