Mapping Financial Stability, PDF eBook

Mapping Financial Stability PDF

Part of the Computational Risk Management series

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This book approaches macroprudential oversight from the viewpoint of three tasks.

The focus concerns a tight integration of means for risk communication into analytical tools for risk identification and risk assessment.

Generally, this book explores approaches for representing complex data concerning financial entities on low-dimensional displays.

Data and dimension reduction methods, and their combinations, hold promise for representing multivariate data structures in easily understandable formats. Accordingly, this book creates a Self-Organizing Financial Stability Map (SOFSM), and lays out a general framework for mapping the state of financial stability.

Beyond external risk communication, the aim of the visual means is to support disciplined and structured judgmental analysis based upon policymakers' experience and domain intelligence.

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