Network Analysis: Defending Financial Stability by Design

Network Analysis: Defending Financial Stability by Design

The financial system operates through complex networks that operational failures can disrupt. Some network structures are more resilient to random failures, for example, from natural disasters. Others are more resilient to targeted incidents, such as hacks. This brief illustrates how network analysis can be used to better understand possible risks to financial stability from such disruptions, and possible defenses. (Brief no. 18-02)