systemic risk analysis

Systemic risk analysis assesses the potential for widespread disruptions in a system, like the financial markets or ecosystems, due to interconnected elements. Think of it like a domino effect: if one part fails, it can trigger failures in others, leading to larger problems. Analysts examine relationships, vulnerabilities, and historical data to identify and mitigate risks that could cause significant damage or instability. This helps organizations, governments, and communities prepare for and respond to crises, ensuring better resilience and stability in complex systems.