text:
The Mist (film)
From Wikipedia, the free encyclopedia
Jump to: navigation, search
The Mist
Theatrical release poster
Directed by
Frank Darabont
Produced by
Frank Darabont
Martin Shafer
Liz Glotzer
Screenplay by
Frank Darabont
Based on
The Mist
by Stephen King
Starring
Thomas Jane
Marcia Gay Harden
Laurie Holden
Andre Braugher
Toby Jones
William Sadler
Jeffrey DeMunn
Frances Sternhagen
Samuel Witwer
Alexa Davalos
Nathan Gamble
Music by
Mark Isham
Cinematography
Rohn Schmidt
Edited by
Hunter M. Via
Production
company
Dimension Films
Darkwoods Productions
Distributed by
Metro-Goldwyn-Mayer
Release date
November 21, 2007 (2007-11-21)
Running time
126 minutes
Country
United States
Language
English
Budget
$18 million[1]
Box office
$57.3 million[2]
The Mist (also known as Stephen King's The Mist) is a 2007 American science-fiction horror film based on the 1980 novella The Mist by Stephen King. The film was written and directed by Frank Darabont. Darabont had been interested in adapting The Mist for the big screen since the 1980s. The film features an ensemble cast including Thomas Jane, Marcia Gay Harden, Samuel Witwer, Toby Jones, and future The Walking Dead actors Jeffrey DeMunn, Juan Gabriel Pareja, Laurie Holden, and Melissa McBride.
Filming for The Mist began in Shreveport, Louisiana, in February 2007. The film was commercially released in the United States and Canada on November 21, 2007; it performed well at the box office and received generally positive reviews. Darabont has since revealed that he had "always had it in mind to shoot The Mist in black and white", a decision inspired by such iconic films as Night of the Living Dead (1968) and the "pre-color" work of Ray Harryhausen. While the film's cinematic release was in color, the director has described the black and white print (released on Blu-ray in 2008) as his "preferred version."[3]
The director revised the ending of the film to be darker than the novella's ending, a change to which King was amenable. Darabont also sought unique creature designs to differentiate them from his creatures in past films.
Although a monster movie, the central theme explores what ordinary people will be driven to do under extraordinary circumstances. The plot revolves around members of the small town of Bridgton, Maine who, after a severe thunderstorm causes the power to go out the night before, meet in a supermarket to pick up supplies. While they struggle to survive an unnatural mist which envelops the town and conceals vicious, Lovecraftian monsters, extreme tensions rise among the survivors.
A meta-reference to this film appears in one of Stephen King's later novels, Under the Dome.
Contents
[hide]
1 Plot
2 Cast
3 Production
3.1 Development
3.2 Writing
3.3 Filming
3.4 Music
3.5 Effects
4 Release
4.1 Critical reception
4.2 Box office
4.3 Home media
5 TV series
6 See also
7 References
8 External links
Plot[edit]
Following a violent thunderstorm, David Drayton leaves his wife Stephanie at home while he ventures into town with his eight-year-old son Billy and their neighbor, Brent Norton, to buy supplies for repairs. Arriving at a grocery store, they and the other patrons notice unusual police and military activity. Moments later, a panicked and injured man, Dan, runs into the store, warning of danger. Soon after, a thick mist envelops the store, accompanied by earthquake-like tremors, setting off the town's fire siren.
A mentally unstable, religious woman, Mrs. Carmody, decides that this is the beginning of Armageddon. A shaken woman (Melissa McBride), against objections from the others, leaves the store to go home to her children. While investigating the store's generator, a bag-boy named Norm volunteers to go outside, but is snatched and pulled into the mist by a tentacle connected to an unseen monster.
Refusing to listen to Drayton, Norton heads outside with a small group to seek help, only to be attacked and killed, prompting the rest of the survivors to barricade the shop-front windows. That night, enormous insects land on and attach themselves to the windows. Moments later, pterodactyl-like animals ram their beaks into the glass, eventually breaking through the windows and allowing the creatures to enter the supermarket. They begin to attack the terrified people inside and kill Sally, a cashier from the store. One of the insects lands on Mrs. Carmody, but doesn't sting her because she keeps still during her prayer. As a result, she starts preaching even more and quickly gains followers among the distraught survivors.
In another attempt to help their situation, a small group of volunteers take a trip to the neighboring pharmacy to gather medical supplies. However, things go horribly wrong and two people are killed by giant spiders, causing most of the people in the market to side with Mrs. Carmody. Two soldiers commit suicide, and a third, Private Jessup, reveals that the local military base was filled with rumors about the Arrowhead Project, the government's attempt to look into other dimensions, and that the scientists responsible for the experiment may have inadvertently opened a doorway into a dimension containing the creatures that are now invading the town. Mrs. Carmody convinces her followers to blame Jessup and he is stabbed and ejected from the store, quickly falling prey to a large praying mantis-like creature.
The following morning, David and eight others secretly gather supplies to flee, but Mrs. Carmody stops them. After stealing the supplies, she gathers her followers and orders them to murder Billy and Amanda Dumfries, only for store assistant manager Ollie to kill her by shooting her with Amanda's gun. Returning to their senses and realizing all that they have done, Mrs. Carmody's traumatized followers reluctantly stand down and allow David's group to exit. As they try to arrive at the escape car, Ollie is eaten by the praying mantis-like creature, Myron and Ambrose are attacked and killed by the giant spiders, and Bud runs back to the market and is allowed to reenter. Only David, Billy, Dan, Amanda, and Irene make it to the automobile.
Driving through the mist, David finds his house destroyed and his wife dead. Devastated, he drives the group south, passing destroyed vehicles and seeing a gigantic six-legged, tentacled beast. When they run out of gas, the group decides there is no point in going on. David shoots the others (with their consent, except for his son who is not old enough to understand) rather than have them endure horrifying deaths. When David is done killing all of them, he is left with no bullet to use on himself. He leaves the car and waits to be killed, but the mist suddenly recedes, revealing that the U.S. Army has arrived, managed to close the portal, and are in the process of exterminating the creatures. David also witnesses rescued survivors, and restoring order. Among the survivors is the woman who left the store at the phenomenon's onset, completely unscathed and having rescued her two children. David realizes that his group was only moments away from being rescued. Aware now that their deaths were premature and in vain, he drops to his knees screaming.
Cast[edit]
Thomas Jane as David Drayton, a painter and film-poster artist trapped in the market with his son Billy.
Marcia Gay Harden as Mrs. Carmody, a fanatically unorthodox religious figure and the film's antagonist.
Laurie Holden as Amanda Dumfries, a married teacher whose husband is away.
Jeffrey DeMunn as Dan Miller, a normal civilian who is the first to see the signs of danger from the mist.
Andre Braugher as Brent Norton, David's neighbor and an attorney who filed a lawsuit against David and lost.
Samuel Witwer as Private Wayne Jessup, a soldier trapped in the market.
Toby Jones as Ollie Weeks, the assistant manager of the market.
William Sadler as Jim Grondin, a belligerent and weak-minded mechanic.
Frances Sternhagen as Irene Reppler, a third-grade teacher.
Nathan Gamble as Billy Drayton, David's eight-year-old son.
Alexa Davalos as Sally, a cashier at the market who is Billy's babysitter.
Chris Owen as Norm, a bag boy.
Robert Treveiler as Bud Brown, the supermarket manager.
David Jensen as Myron LaFleur, a mechanic.
Buck Taylor as Ambrose Cornell, an elderly man who sides with David's group.
Juan Gabriel Pareja as Morales
Ron Clinton Smith as Mr. Mackey, the store butcher.
Melissa McBride as Woman with Kids at Home.
Kelly Collins Lintz as Steffanie "Steff" Drayton
Production[edit]
Development[edit]
Director Frank Darabont first read Stephen King's 1980 novella The Mist in the Dark Forces anthology,[4] and originally expressed interest in directing a film adaptation for his directing debut. He instead filmed The Shawshank Redemption, also based on another King novella.[5] In October 1994, after completing The Shawshank Redemption, Darabont reiterated his interest in filming The Mist.[6] Darabont did not immediately follow through, instead directing the 1999 film adaptation of Stephen King's The Green Mile.[7] Darabont eventually set up a first look deal for The Mist with Paramount Pictures, having been entrusted feature film rights by Stephen King.[5] By December 2004, Darabont said that he had begun writing an adapted screenplay for The Mist,[8] and by October 2006, the project moved from Paramount to Dimension Films, with Darabont attached to direct and actor Thomas Jane in negotiations to join the cast.[5]
Writing[edit]
"The story is less about the monsters outside than about the monsters inside, the people you're stuck with, your friends and neighbors breaking under the strain."
— Darabont on The Mist[9]
Director Darabont chose to film The Mist after filming the "straighter dramas" The Shawshank Redemption and The Green Mile because he "wanted to make a very direct, muscular kind of film". Darabont conceived of a new ending in translating the novella for the big screen. Author King praised Darabont's new ending, describing it as one that would be unsettling for studios. King said, "The ending is such a jolt—wham! It's frightening. But people who go to see a horror movie don't necessarily want to be sent out with a Pollyanna ending."[10]
Darabont described The Mist as quaint in its elements of monsters and fear of the unknown compared to the contemporary popularity of films with torture porn. The director saw The Mist as a throwback to Paddy Chayefsky and William Shakespeare, explaining, "It's people at each other." He highlighted the element of fear in the film in how it compelled people to behave differently. Darabont said, "How primitive do people get? It's Lord of the Flies that happens to have some cool monsters in it."[4] He also drew parallels to The Twilight Zone episode "The Monsters Are Due on Maple Street" and the 1944 film Lifeboat.[1]
In the novella, the character David Drayton—who is married—has a sexual encounter with Amanda Dumfries, who is also married. Darabont did not want to attempt conveying on screen the protagonist being involved in an extramarital affair. The characters in the film, portrayed by Thomas Jane and Laurie Holden respectively, instead share a more emotional relationship. Jane explained, "We kind of form a little family, sort of surrogate family where my son and I'm a father and she becomes the mother to the son. We become a little unit as we're trying to get through this nightmare together." Holden compared the nightmare to what refugees experienced at the Louisiana Superdome during Hurricane Katrina.[11]
While the origin of the mist in the film is never explained in great detail, Frank Darabont did write an opening scene in a draft dated 5 August 2005, in which the thunderstorm causes a malfunction at the Arrowhead Project's lab that allows the portal to another dimension to stay open too long. The scene was never filmed.
Filming[edit]
In December 2006, Jane finalized negotiations with the studio to join the cast.[12] In January 2007, actors Andre Braugher and Laurie Holden joined Jane for the cast of The Mist.[13] Production began the following February at StageWorks of Louisiana, a sound stage and film production facility in Shreveport, Louisiana.[14] Marcia Gay Harden and Toby Jones joined the cast later in the month.[15]
William Sadler, Jeffrey DeMunn, and Brian Libby, each of whom appeared in Darabont's previous Stephen King adaptations The Shawshank Redemption and The Green Mile, were cast in supporting roles. Sadler had previously played Jane's role, David Drayton, in a 1986 audiobook version of The Mist. Darabont wanted to cast King in the supporting role that eventually went to Brian Libby, an offer that King turned down because he did not want to travel to film the part.[16]
Darabont sought to pursue "a more fluid, ragged documentary kind of direction" with The Mist,[11] so he contacted the camera crew from the TV series The Shield, after having directed one episode, to use their style in the film.[17] Darabont attempted to film The Mist digitally but found that it "wound up looking too beautiful". The director chose to film with 400 ASA from Fujifilm, which gave footage a grainy effect.[1]
In the opening shot, David is drawing in his room. The drawing is based on Stephen King's Dark Tower series, and was painted by film poster designer Drew Struzan. Darabont also included re-productions of Struzan's posters and illustrations for The Shawshank Redemption, The Green Mile, John Carpenter's The Thing, and Guillermo Del Toro's Pan's Labyrinth. Struzan would go on to produce a poster for The Mist, but this image was not used in the film's marketing campaign.[18]
Darabont collaborated with the production designer to create a mix of eras to avoid appearing as a period piece but also not looking so contemporary. Cell phones were used by characters in The Mist, but the military police in the film did not dress in modern attire. While an MP also drove an old Jeep instead of a Humvee, other cars seen in the film are modern models.[1] The city police cars in the beginning of the film are a 1987 Chevrolet Caprice and a 1988 Ford LTD Crown Victoria, cars that were standard police vehicles in the late 1980s but have not been used in force since the late 1990s.
Over a hundred extras from Shreveport, Louisiana were included in The Mist. Unlike conventional application of extras in the background of a film, sixty of the hundred extras were interwoven with the film's ensemble cast.[19] Additional elements giving the film a local flavor include the prominence of local Louisiana brands such as Zapp's potato chips. Exterior shots of the house at the beginning were in Shreveport. Exterior shots of the supermarket were in Vivian, Louisiana. Also, if looked closely at, the shields on the side of the passing firetrucks early in the film identify them as part of the Caddo Parish fire department. This is possibly a mistake as the film is allegedly set in Maine.
Music[edit]
Darabont chose to use music to minimal effect in The Mist in order to capture the "heavier feel" of the darker ending he had written to replace the one from the novella. The director explained, "Sometimes movie music feels false. I've always felt that silent can be scarier than loud, a whisper more frightening than a bang, and we wanted to create a balance. We kept music to a minimum to keep that vérité, documentary feel." Darabont chose to overlay the song "The Host of Seraphim" by the band Dead Can Dance, a spiritual piece characterized by wailing and chanting. As a fan of Dead Can Dance, Darabont thought that the song played "as a requiem mass for the human race."[20] The original score was composed by Academy Award-nominated composer Mark Isham.
Effects[edit]
Darabont hired artists Jordu Schell[21] and Bernie Wrightson to assist in designing the creatures for the film.[17] Greg Nicotero worked on the film's creature design and make-up effects, while Everett Burrell served as the visual effects supervisor. Nicotero initially sketched out ideas for creature design when Darabont originally expressed interest in filming The Mist in the 1980s. When the project was greenlit, Nicotero, Burrell, and Darabont collaborated about the creature design at round-table meetings at CaféFX.[11] The studio for visual effects had been recommended to Darabont by Guillermo del Toro after Darabont asked the director who created the visual effects for Pan's Labyrinth.
Due to the creatures' being described in only a few sentences in the novella, Darabont sought to conceive of new designs. The challenge was creating designs that felt unique. Nicotero, who was versed in film history and genre history, reviewed past creature designs to avoid having similar designs.[1] When the designs were completed, Nicotero and Burrell educated the cast on the appearance of the creatures by showing puppets and the function of their eyes and mouths. The puppet demonstrations served as reference points for the cast, who had to respond to motion capture dots during filming.[11]
Release[edit]
The Mist was screened at the film festival ShowEast on October 18, 2007, at which director Frank Darabont received the Kodak Award for Excellence in Filmmaking for his previous works The Shawshank Redemption and The Green Mile.[22]
Critical reception[edit]
On the film review aggregate website Rotten Tomatoes, The Mist has a 73% approval rating, based on 140 reviews, with an average rating of 6.6/10, indicating generally favorable reviews.[23] On the website Metacritic, the film holds an average of 58 out of 100 based on 29 reviews.[24]
James Berardinelli wrote of the film, "The Mist is what a horror film should be—dark, tense, and punctuated by just enough gore to keep the viewer's flinch reflex intact. ... Finally, after a long list of failures, someone has done justice in bringing one of King's horror stories to the screen. Though definitely not the feel-good movie of the season, this is a must-see for anyone who loves the genre and doesn't demand 'torture porn' from horror."[25] Roger Ebert was negative, however, writing: "If you have seen ads or trailers suggesting that horrible things pounce on people, and they make you think you want to see this movie, you will be correct. It is a competently made Horrible Things Pouncing on People Movie. If you think Frank Darabont has equaled the Shawshank and Green Mile track record, you will be sadly mistaken."[26]
Bloody Disgusting ranked the film #4 on their list of the "Top 20 Horror Films of the Decade", with the article saying "The scary stuff works extremely well, but what really drives this one home is Darabont's focus on the divide that forms between two factions of the townspeople—the paranoid, Bible-thumping types and the more rational-minded, decidedly left-wing members of the populace. This allegorical microcosm of Bush Jr.-era America is spot on, and elevates an already-excellent film to even greater heights."[27]
The Mist has a very close resemblance to The Exterminating Angel (El ángel exterminador) by Luis Buñuel released in 1962. Where a group of individuals are, for unknown reasons, stuck in a living room that prompts them to slowly reveal their savage instincts. Bunuel's classic was filmed in Mexico and is less known in the US but would have been known to filmmakers like Guillermo del Torro and Frank Darabont.
The film was later nominated for three Saturn Awards; Best Horror Film, Best Director, and a win for Best Supporting Actress for Harden.
Box office[edit]
The film was commercially released in the United States and Canada on November 21, 2007.[28] Over the opening weekend in the United States and Canada, The Mist grossed $8,931,973. As of August 9, 2009, the film grossed $25,593,755 in the United States and Canada and $27,560,960 in other territories for a worldwide total of $57,289,103.[2]
Home media[edit]
The Mist was released on DVD and Blu-ray on March 25, 2008. The single-disc includes an audio commentary by writer/director Frank Darabont, eight deleted scenes with optional commentary, and "A Conversation With Stephen King and Frank Darabont" featurette.
The two-disc edition includes the exclusive black and white presentation of the film, as well as the color version, and five featurettes ("When Darkness Came: The Making of The Mist", "Taming the Beast: Shooting Scene 35", "Monsters Among Us: A Look at the Creature FX", "The Horror of It All: The Visual FX of The Mist", and "Drew Struzan: Appreciation of an Artist").
TV series[edit]
Main article: The Mist (TV series)
In November 2013, Bob Weinstein revealed that he and Darabont were developing a 10-part television series based on the film.[29][30] In February 2016, Spike picked up the pilot.[31] In April 2016, Spike ordered the series.[32] Emmy-winning director Adam Bernstein directed the pilot. It premiered on June 22, 2017.[33]
See also[edit]
The Fog (novel), a 1975 novel by James Herbert
References[edit]
^ Jump up to: a b c d e Edward Douglas (2007-11-16). "An Exclusive Interview with Mr. Frank Darabont!". ShockTillYouDrop.com. Retrieved 2007-11-20.
^ Jump up to: a b "The Mist (2007)". Box Office Mojo. Retrieved 2007-12-05.
Jump up ^ Darabont, Frank Darabont (2008). "Director's Introduction". The Mist.
^ Jump up to: a b Stax (2007-07-28). "SDCC 07: Chatting in The Mist". IGN. Retrieved 2007-11-19.
^ Jump up to: a b c Michael Fleming (2006-10-18). "'Mist' envelops Dimension". Variety. Retrieved 2007-05-17.
Jump up ^ Patrick Z. McGavin (1994-10-04). "LONG LIVE THE KING". Chicago Tribune.
Jump up ^ "The Green Mile (1999)". Internet Movie Database. Retrieved 2007-05-17.
Jump up ^ "Frank Darabont on Adapting The Mist". ComingSoon.net. 2004-05-15. Retrieved 2007-05-17.
Jump up ^ Kent, Alexandyr (2007-03-23). "'A bad day at the market'". The Times.
Jump up ^ Breznican, Anthony (2007-06-20). "Stephen King adapts to Hollywood". USA Today. Retrieved 2007-11-19.
^ Jump up to: a b c d Rebecca Murray (2007-08-15). "Behind the Scenes of The Mist Based on a Stephen King Story". About.com. Retrieved 2007-11-19.
Jump up ^ "The Punisher Enters The Mist". IGN. 2006-12-06. Retrieved 2007-05-17.
Jump up ^ Borys Kit (2007-01-26). "Braugher, Holden float to 'Mist'". The Hollywood Reporter. Archived from the original on 2007-02-17. Retrieved 2007-05-17.
Jump up ^ Alexandyr Kent (2007-01-19). "'The Mist' creeping into Shreveport". The Times.
Jump up ^ Michael Fleming (2007-02-21). "Actors will emerge from King's 'Mist'". Variety. Retrieved 2007-05-17.
Jump up ^ http://www.movieweb.com/news/97/24397.php
^ Jump up to: a b Edward Douglas (2007-07-27). "Comic-Con '07: Two Clips From The Mist!". ShockTillYouDrop.com. Retrieved 2007-07-30.
Jump up ^ Drew Struzan, Poster for "The Mist" (2007) http://www.drewstruzan.com/illustrated/documents/img/gl0812090739458973.jpg
Jump up ^ Alexandyr Kent (2007-11-18). "The core of a horror flick: 'The Mist' features dozens of local extras". The Times. Archived from the original on January 12, 2008. Retrieved 2007-11-20.
Jump up ^ David Frese (2007-11-17). "Frank Darabont dares to alter a Stephen King classic: ‘The Mist’". Kansas City Star. Archived from the original on 2007-11-21. Retrieved 2007-11-20.
Jump up ^ "The Most Realistic Grand Moff Tarkin Bust Ever Made". At Tha Movies. 2014-01-27. Retrieved 2014-01-27.
Jump up ^ Carl DiOrio (2007-10-16). "ShowEast to close high on Darabont". The Hollywood Reporter. Archived from the original on 2007-10-18. Retrieved 2007-11-20.
Jump up ^ "Stephen King's The Mist". Rotten Tomatoes. Retrieved 2010-01-26.
Jump up ^ "Mist, The (2007): Reviews". Metacritic. Retrieved 2010-01-26.
Jump up ^ "Review: Mist, The". reelviews.net.
Jump up ^ Roger Ebert (20 November 2007). "The Mist". suntimes.com.
Jump up ^ "00's Retrospect: Bloody Disgusting's Top 20 Films of the Decade...Part 4". Bloody Disgusting. Retrieved 2010-01-03.
Jump up ^ "The Mist (2007)". Box Office Mojo. Retrieved 2007-11-20.
Jump up ^ Cieply, Michael (November 24, 2013). "The Weinstein Company, Seeking Hits, Shifts to TV". The New York Times. Retrieved November 30, 2013.
Jump up ^ Hipes, Patrick (16 September 2015). "‘The Mist’ TV Series Emerges From Dimension & Scribe Christian Torpe". Retrieved 22 June 2016.
Jump up ^ Trumbore, Dave (February 25, 2013). "Stephen King’s ‘The Mist’ TV Series Gets Pilot Order at Spike". Collider. Retrieved February 25, 2016.
Jump up ^ Andreeva, Nellie (April 14, 2016). "‘The Mist’ Stephen King TV Adaptation Gets Series Order At Spike". Deadline.
Jump up ^ Petski, Denise (May 6, 2016). "Adam Bernstein To Direct ‘The Mist’ On Spike". Deadline.
External links[edit]
Wikiquote has quotations related to: The Mist (film)
The Mist on IMDb
The Mist at AllMovie
The Mist at Box Office Mojo
The Mist at Rotten Tomatoes
The Mist at Metacritic
Monsters in the Mist article at MonsterLegacy.net
Cinemetrical data
[show]
v
t
e
Frank Darabont
Feature films
Buried Alive (1990)
The Shawshank Redemption (1994)
The Green Mile (1999)
The Majestic (2001)
The Mist (2007)
TV series developed or created
The Walking Dead (2010–2011)
Mob City (2013)
[show]
v
t
e
Stephen King
Bibliography
Short fiction
Unpublished and uncollected
Awards and nominations
Novels
Carrie (1974)
'Salem's Lot (1975)
The Shining (1977)
The Stand (1978)
The Dead Zone (1979)
Firestarter (1980)
Cujo (1981)
Christine (1983)
Pet Sematary (1983)
Cycle of the Werewolf (1983)
The Talisman (1984)
It (1986)
The Eyes of the Dragon (1987)
Misery (1987)
The Tommyknockers (1987)
The Dark Half (1989)
Needful Things (1991)
Gerald's Game (1992)
Dolores Claiborne (1992)
Insomnia (1994)
Rose Madder (1995)
The Green Mile (1996)
Desperation (1996)
Bag of Bones (1998)
The Girl Who Loved Tom Gordon (1999)
The Plant (2000; unfinished)
Dreamcatcher (2001)
Black House (2001)
From a Buick 8 (2002)
The Colorado Kid (2005)
Cell (2006)
Lisey's Story (2006)
Duma Key (2008)
Under the Dome (2009)
11/22/63 (2011)
Joyland (2013)
Doctor Sleep (2013)
Mr. Mercedes (2014)
Revival (2014)
Finders Keepers (2015)
End of Watch (2016)
Gwendy's Button Box (2017)
Sleeping Beauties (2017)
The Dark Tower series
The Gunslinger (1982)
The Drawing of the Three (1987)
The Waste Lands (1991)
Wizard and Glass (1997)
Wolves of the Calla (2003)
Song of Susannah (2004)
The Dark Tower (2004)
The Wind Through the Keyhole (2012)
Richard Bachman novels
Rage (1977)
The Long Walk (1979)
Roadwork (1981)
The Running Man (1982)
Thinner (1984)
The Bachman Books (1985)
The Regulators (1996)
Blaze (2007)
Short fiction collections
Night Shift (1978)
Different Seasons (1982)
Skeleton Crew (1985)
Four past Midnight (1990)
Nightmares & Dreamscapes (1993)
Hearts in Atlantis (1999)
Everything's Eventual (2002)
Just After Sunset (2008)
Full Dark, No Stars (2010)
The Bazaar of Bad Dreams (2015)
Non-fiction
Danse Macabre (1981)
Nightmares in the Sky (1988)
On Writing (2000)
Secret Windows (2000)
Faithful (2004)
"Guns" (2013)
Screenplays
Creepshow (1982)
Cat's Eye (1985)
Silver Bullet (1985)
Maximum Overdrive (1986; also director)
Pet Sematary (1989)
Sleepwalkers (1992)
A Good Marriage (2014)
Cell (2016)
Teleplays
"Sorry, Right Number" (1987)
Golden Years (1991)
The Stand (1994)
The Shining (1997)
"Chinga" (1998)
Storm of the Century (1999)
Rose Red (2002)
Kingdom Hospital (2004)
Desperation (2006)
"Heads Will Roll" (2014)
Comics
Creepshow (1982)
Heroes for Hope (1985)
The Secretary of Dreams (2006)
The Dark Tower (2007–)
The Stand (2008–12)
The Talisman (2009–10)
American Vampire (2010)
N. (2010)
Road Rage (2012)
The Dark Man (2013)
Musical collaborations
Michael Jackson's Ghosts (1997)
Black Ribbons (2010)
Ghost Brothers of Darkland County (2012)
Anthologies edited
The Best American Short Stories 2007 (2007)
Six Scary Stories (2016)
Worlds and concepts
Fictional locations of Maine
Jerusalem's Lot
Castle Rock
Derry
Fictional books
Multiverse
All-World
Dollar Baby
Related articles
List of adaptations
Books about Stephen King
Rock Bottom Remainders
Philtrum Press
Six Stories
Stephen King Goes to the Movies
Charlie the Choo-Choo
Hearts in Suspension
Tabitha King
Joe Hill
Owen King
Book
Category
[show]
v
t
e
Adaptations of works by Stephen King
Films
The Shining (1980)
Cujo (1983)
The Dead Zone (1983)
Christine (1983)
Cat's Eye (1985)
Silver Bullet (1985)
The Running Man (1987)
Tales from the Darkside: The Movie (1990)
Graveyard Shift (1990)
Misery (1990)
Sleepwalkers (1992)
Needful Things (1993)
The Dark Half (1993)
Dolores Claiborne (1995)
Thinner (1996)
The Night Flier (1997)
The Green Mile (1999)
Hearts in Atlantis (2001)
Dreamcatcher (2003)
Secret Window (2004)
Riding the Bullet (2004)
1408 (2007)
The Mist (2007)
Dolan's Cadillac (2009)
A Good Marriage (2014)
Mercy (2014)
Cell (2016)
The Dark Tower (2017)
It (2017)
Gerald's Game (2017)
Carrie
Carrie (1976)
The Rage: Carrie 2 (1999)
Carrie (2002)
Carrie (2013)
Creepshow
Creepshow (1982)
Creepshow 2 (1987)
Creepshow 3 (2007)
Children of the Corn
Disciples of the Crow (1983)
Children of the Corn (1984)
The Final Sacrifice (1992)
Urban Harvest (1995)
The Gathering (1996)
Fields of Terror (1998)
Isaac's Return (1999)
Revelation (2001)
Children of the Corn (2009)
Genesis (2011)
Different Seasons
Stand by Me (1986)
The Shawshank Redemption (1994)
Apt Pupil (1998)
Firestarter
Firestarter (1984)
Rekindled (2002)
Trucks
Maximum Overdrive (1986)
Trucks (1997)
Pet Sematary
Pet Sematary (1989)
Pet Sematary Two (1992)
The Mangler
The Mangler (1995)
The Mangler 2 (2002)
The Mangler Reborn (2005)
The Lawnmower Man
The Lawnmower Man (1992)
Beyond Cyberspace (1996)
TV films, episodes, and miniseries
"Gramma" (1986)
"Sorry, Right Number" (1987)
It (1990)
The Tommyknockers (1993)
The Stand (1994)
The Langoliers (1995)
The Shining (1997)
Quicksilver Highway (1997)
"The Revelations of Becka Paulson" (1997)
Storm of the Century (1999)
Stephen King's Desperation (2006)
Nightmares & Dreamscapes: From the Stories of Stephen King (2006)
Bag of Bones (2011)
Big Driver (2014)
Salem's Lot
Salem's Lot (1979)
A Return to Salem's Lot (1987)
Salem's Lot (2004)
Sometimes They Come Back
Sometimes They Come Back (1991)
Sometimes They Come Back... Again (1996)
Sometimes They Come Back... for More (1998)
Rose Red
Rose Red (2002)
The Diary of Ellen Rimbauer (2003)
TV series
Golden Years (1991)
The Dead Zone (2002–2007)
Kingdom Hospital (2004)
Haven (2010–2015)
Under the Dome (2013–2015)
11.22.63 (2016)
The Mist (2017–present)
Mr. Mercedes (2017)
Castle Rock (TBA)
Book
Retrieved from "https://en.wikipedia.org/w/index.php?title=The_Mist_(film)&oldid=801573150"
Categories:
2007 films
English-language films
2007 horror films
2000s disaster films
2000s monster movies
2000s science fiction horror films
2000s supernatural films
American disaster films
American films
American monster movies
American science fiction horror films
American supernatural horror films
Dimension Films films
Dystopian films
Filicide in fiction
Film scores by Mark Isham
Films based on works by Stephen King
Films based on American horror novels
Films directed by Frank Darabont
Films set in Maine
Films shot in Louisiana
Giant monster films
Murder in films
Parallel universes in fiction
Post-apocalyptic films
Screenplays by Frank Darabont
Suicide in films
Navigation menu
Personal tools
Not logged in
Talk
Contributions
Create account
Log in
Namespaces
Article
Talk
Variants
Views
Read
Edit
View history
More
Search
Navigation
Main page
Contents
Featured content
Current events
Random article
Donate to Wikipedia
Wikipedia store
Interaction
Help
About Wikipedia
Community portal
Recent changes
Contact page
Tools
What links here
Related changes
Upload file
Special pages
Permanent link
Page information
Wikidata item
Cite this page
Print/export
Create a book
Download as PDF
Printable version
In other projects
Wikiquote
Languages
العربية
বাংলা
Deutsch
Eesti
Español
فارسی
Français
Galego
한국어
Bahasa Indonesia
Italiano
עברית
Lietuvių
Nederlands
日本語
Polski
Português
Română
Русский
Slovenščina
Suomi
Svenska
ไทย
Türkçe
Українська
中文
Edit links
This page was last edited on 20 September 2017, at 14:22.
Text is available under the Creative Commons Attribution-ShareAlike License; additional terms may apply. By using this site, you agree to the Terms of Use and Privacy Policy. Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc., a non-profit organization.
Privacy policy
About Wikipedia
Disclaimers
Contact Wikipedia
Developers
Cookie statement
Mobile view

values: mw-page-base noprint

values: mw-head-base noprint

attrs: id class style

value: i

values: firstHeading firstHeading en

values: siteSub noprint

values: jump-to-nav mw-jump

value: th

attrs: colspan class style

value: tr

value: td

attrs: colspan style

attrs: scope style

value: li

values:
/wiki/Samuel_Witwer
mw-redirect
Samuel Witwer

values:
/wiki/Praying_mantis
mw-redirect
Praying mantis

values: float: right; margin-left: 1em; margin-right: 2em; font-size: 85%; background:#c6dbf7; color:black; width:30em; max-width: 40%;

values:
/wiki/Torture_porn
mw-redirect
Torture porn

values: Effect of Hurricane Katrina on the Louisiana Superdome

values:
/wiki/Louisiana_Superdome
mw-redirect
Louisiana Superdome

values:
/wiki/Guillermo_Del_Toro
mw-redirect
Guillermo Del Toro

values:
/wiki/Period_piece
mw-redirect
Period piece

values:
/wiki/Extra_(actor)
mw-redirect
Extra (actor)

values:
/wiki/Caddo_Parish
mw-redirect
Caddo Parish

values:
/wiki/Requiem_mass
mw-redirect
Requiem mass

values:
/wiki/Saturn_Awards
mw-redirect
Saturn Awards

values:
/wiki/Blu-ray_Disc
mw-redirect
Blu-ray Disc

values:
/wiki/Spike_(TV_network)
mw-redirect
Spike (TV network)

values:
nofollow
http://www.imdb.com/title/tt0120689/
external text

values:
/wiki/Internet_Movie_Database
mw-redirect
Internet Movie Database

values:
/wiki/Kansas_City_Star
mw-redirect
Kansas City Star

values:
nofollow
http://www.rottentomatoes.com/m/mist/
external text

values:
nofollow
http://www.imdb.com/title/tt0884328/
external text

values:
nofollow
external text
http://www.allmovie.com/movie/v376923

values:
nofollow
https://www.rottentomatoes.com/m/mist/
external text

values:
nofollow
https://monsterlegacy.net/
external text

values: nowraplinks collapsible autocollapse navbox-inner

values: Unpublished and uncollected works by Stephen King

values: List of awards and nominations received by Stephen King

values: The Dark Tower II: The Drawing of the Three

values: The Dark Tower: The Wind Through the Keyhole

values:
/wiki/On_Writing_(Stephen_King)
mw-redirect
On Writing (Stephen King)

values:
/wiki/Jerusalem%27s_Lot,_Maine
mw-redirect
Jerusalem's Lot, Maine

values: List of fictional books in the works of Stephen King

values: List of adaptations of works by Stephen King

attrs: alt src title width height srcset data-file-width data-file-height

values: nowraplinks hlist collapsible collapsed navbox-inner

values: Template:Media based on Stephen King works

values: Template talk:Media based on Stephen King works

values: Children of the Corn II: The Final Sacrifice

values: Children of the Corn V: Fields of Terror

values: Children of the Corn 666: Isaac's Return

values: The Diary of Ellen Rimbauer (miniseries)

values: Category:2000s science fiction horror films

values: Category:American science fiction horror films

values: Category:American supernatural horror films

values: Category:Films based on works by Stephen King

values: Category:Films based on American horror novels

values: Category:Films directed by Frank Darabont

values:
catlinks mw-normal-catlinks
catlinks mw-normal-catlinks
interface

values: Discussion about edits from this IP address [ctrl-alt-n]

values: A list of edits made from this IP address [ctrl-alt-y]

values: You are encouraged to create an account and log in; however, it is not mandatory

values: You're encouraged to log in; however, it's not mandatory. [ctrl-alt-o]

values:
/wiki/The_Mist_(film)
View the content page [ctrl-alt-c]
c

values: Discussion about the content page [ctrl-alt-t]

values: p-namespaces navigation vectorTabs p-namespaces-label

values:
p-variants
navigation
vectorMenu emptyPortlet
p-variants-label

values: Past revisions of this page [ctrl-alt-h]

values: p-views navigation vectorTabs p-views-label

values:
p-cactions
navigation
vectorMenu emptyPortlet
p-cactions-label

values:
mw-wiki-logo
/wiki/Main_Page
Visit the main page

values:
/wiki/Main_Page
Visit the main page [ctrl-alt-z]
z

values: Featured content – the best of Wikipedia

values: Find background information on current events

values:
/wiki/Special:Random
Load a random article [ctrl-alt-x]
x

values: portal navigation p-navigation p-navigation-label

values: Guidance on how to use and edit Wikipedia

values: About the project, what you can do, where to find things

values: A list of recent changes in the wiki [ctrl-alt-r]

values: portal navigation p-interaction p-interaction-label

values: List of all English Wikipedia pages containing links to this page [ctrl-alt-j]

values: Recent changes in pages linked from this page [ctrl-alt-k]

values:
/wiki/Wikipedia:File_Upload_Wizard
Upload files [ctrl-alt-u]
u

values: A list of all special pages [ctrl-alt-q]

values: Permanent link to this revision of the page

values: Link to connected data repository item [ctrl-alt-g]

values: Printable version of this page [ctrl-alt-p]

values: portal navigation p-wikibase-otherprojects p-wikibase-otherprojects-label

values:
uls-settings-trigger
Language settings
0
button
true

values: السديم (فيلم) – Arabic

values: দ্য মিস্ট (চলচ্চিত্র) – Bangla

values:
https://de.wikipedia.org/wiki/Der_Nebel
Der Nebel – German
de
de
interlanguage-link-target

values:
https://es.wikipedia.org/wiki/The_Mist
The Mist – Spanish
es
es
interlanguage-link-target

values:
https://fr.wikipedia.org/wiki/The_Mist
The Mist – French
fr
fr
interlanguage-link-target

values:
https://id.wikipedia.org/wiki/The_Mist
The Mist – Indonesian
id
id
interlanguage-link-target

values:
https://it.wikipedia.org/wiki/The_Mist
The Mist – Italian
it
it
interlanguage-link-target

values: הערפל (סרט) – Hebrew

values:
https://nl.wikipedia.org/wiki/The_Mist
The Mist – Dutch
nl
nl
interlanguage-link-target

values: Мгла (фильм) – Russian

values: interlanguage-link interwiki-sl badge-Q17437796 badge-featuredarticle

values:
https://sv.wikipedia.org/wiki/The_Mist
The Mist – Swedish
sv
sv
interlanguage-link-target

values: มฤตยูหมอกกินมนุษย์ – Thai

values: mediawiki ltr sitedir-ltr mw-hide-empty-elt ns-0 ns-subject page-The_Mist_film rootpage-The_Mist_film skin-vector action-view


text:
Systemic risk
From Wikipedia, the free encyclopedia
Jump to: navigation, search
Not to be confused with systematic risk.
This article may rely excessively on sources too closely associated with the subject, potentially preventing the article from being verifiable and neutral. Please help improve it by replacing them with more appropriate citations to reliable, independent, third-party sources. (January 2016) (Learn how and when to remove this template message)
Categories of
Financial risk
Credit risk
Concentration risk
Market risk
Interest rate risk
Currency risk
Equity risk
Commodity risk
Liquidity risk
Refinancing risk
Operational risk
Country risk
Legal risk
Model risk
Political risk
Valuation risk
Reputational risk
Volatility risk
Settlement risk
Profit risk
Systemic risk
v
t
e
In finance, systemic risk is the risk of collapse of an entire financial system or entire market, as opposed to risk associated with any one individual entity, group or component of a system, that can be contained therein without harming the entire system.[1][2] It can be defined as "financial system instability, potentially catastrophic, caused or exacerbated by idiosyncratic events or conditions in financial intermediaries".[3] It refers to the risks imposed by interlinkages and interdependencies in a system or market, where the failure of a single entity or cluster of entities can cause a cascading failure, which could potentially bankrupt or bring down the entire system or market.[4] It is also sometimes erroneously referred to as "systematic risk".
Contents
[hide]
1 Explanation
2 Measurement
2.1 TBTF/TICTF
2.1.1 TBTF
2.1.2 TICTF
2.1.3 Criticisms of systemic risk measurements
2.2 SRISK
2.2.1 Pair/Vine Copulas
3 Valuation of assets and derivatives under systemic risk
3.1 Inadequacy of classic valuation models
3.1.1 The Merton (1974) model
3.1.2 Non-trivial asset value equations
3.1.3 Over- and underestimation of default probabilities
3.2 Structural models under financial interconnectedness
3.3 Risk-neutral valuation: price indeterminacy and open problems
4 Factors
5 Diversification
6 Regulation
7 Project risks
8 Systemic risk and insurance
9 Discussion
10 See also
11 Further reading
12 References
Explanation[edit]
Systemic risk has been associated with a bank run which has a cascading effect on other banks which are owed money by the first bank in trouble, causing a cascading failure. As depositors sense the ripple effects of default, and liquidity concerns cascade through money markets, a panic can spread through a market, with a sudden flight to quality, creating many sellers but few buyers for illiquid assets. These interlinkages and the potential "clustering" of bank runs are the issues which policy makers consider when addressing the issue of protecting a system against systemic risk.[1][5] Governments and market monitoring institutions (such as the U.S. Securities and Exchange Commission (SEC), and central banks) often try to put policies and rules in place with the justification of safeguarding the interests of the market as a whole, claiming that the trading participants in financial markets are entangled in a web of dependencies arising from their interlinkage. In simple English, this means that some companies are viewed as too big and too interconnected to fail. Policy makers frequently claim that they are concerned about protecting the resiliency of the system, rather than any one individual in that system.[5] Systemic risk arises because of the interaction of market participants, and therefore can be seen as a form of endogenous risk. See also What is systemic risk? on YouTube.[6]
Systemic risk should not be confused with market or price risk as the latter is specific to the item being bought or sold and the effects of market risk are isolated to the entities dealing in that specific item. This kind of risk can be mitigated by hedging an investment by entering into a mirror trade.
Insurance is often easy to obtain against "systemic risks" because a party issuing that insurance can pocket the premiums, issue dividends to shareholders, enter insolvency proceedings if a catastrophic event ever takes place, and hide behind limited liability. Such insurance, however, is not effective for the insured entity.
One argument that was used by financial institutions to obtain special advantages in bankruptcy for derivative contracts was a claim that the market is both critical and fragile.[1][5][7][8]
Systemic risk can also be defined as the likelihood and degree of negative consequences to the larger body. With respect to federal financial regulation, the systemic risk of a financial institution is the likelihood and the degree that the institution's activities will negatively affect the larger economy such that unusual and extreme federal intervention would be required to ameliorate the effects.[9]
A general definition of systemic risk which is not limited by its mathematical approaches, model assumptions or focus on one institution, and which is also the first operationalizable definition of systemic risk encompassing the systemic character of financial, political, environmental, and many other risks, was put forth in 2010.[10]
The Systemic Risk Centre at the London School of Economics is focused on the study of systemic risk. It finds that systemic risk is a form of endogenous risk, hence frustrating empirical measurements of systemic risk.
Measurement[edit]
TBTF/TICTF[edit]
According to the Property Casualty Insurers Association of America, there are two key assessments for measuring systemic risk, the "too big to fail" (TBTF) and the "too interconnected to fail" (TICTF) tests. First, the TBTF test is the traditional analysis for assessing the risk of required government intervention. TBTF can be measured in terms of an institution's size relative to the national and international marketplace, market share concentration, and competitive barriers to entry or how easily a product can be substituted. Second, the TICTF test is a measure of the likelihood and amount of medium-term net negative impact to the larger economy of an institution's failure to be able to conduct its ongoing business. The impact is measure beyond the institution's products and activities to include the economic multiplier of all other commercial activities dependent specifically on that institution. The impact is also dependent on how correlated an institution's business is with other systemic risks.[11]
TBTF[edit]
Too Big To Fail: The traditional analysis for assessing the risk of required government intervention is the "Too Big to Fail" Test (TBTF). TBTF can be measured in terms of an institution's size relative to the national and international marketplace, market share concentration (using the Herfindahl-Hirschman Index for example), and competitive barriers to entry or how easily a product can be substituted. While there are large companies in most financial marketplace segments, the national insurance marketplace is spread among thousands of companies, and the barriers to entry in a business where capital is the primary input are relatively minor. The policies of one homeowners insurer can be relatively easily substituted for another or picked up by a state residual market provider, with limits on the underwriting fluidity primarily stemming from state-by-state regulatory impediments, such as limits on pricing and capital mobility. During the recent financial crisis, the collapse of the American International Group (AIG) posed a significant systemic risk to the financial system. There are arguably either no or extremely few insurers that are TBTF in the U.S. marketplace.
TICTF[edit]
Too Interconnected to Fail: A more useful systemic risk measure than a traditional TBTF test is a "Too Interconnected to Fail" (TICTF) assessment. An intuitive TICTF analysis has been at the heart of most recent federal financial emergency relief decisions. TICTF is a measure of the likelihood and amount of medium-term net negative impact to the larger economy of an institution's failure to be able to conduct its ongoing business. Network models have been proposed as a method for quantifying the impact of interconnectedness on systemic risk.[12] The impact is measured not just on the institution's products and activities, but also the economic multiplier of all other commercial activities dependent specifically on that institution. It is also dependent on how correlated an institution's business is with other systemic risk.[13]
Criticisms of systemic risk measurements[edit]
Criticisms of systemic risk measurements: Danielsson et al.[14][15] express concerns about systemic risk measurements, such as SRISK and CoVaR, because they are based on market outcomes that happen multiple times a year, so that the probability of systemic risk as measured does not correspond to the actual systemic risk in the financial system. Systemic financial crises happen once every 43 years for a typical OECD country and measurements of systemic risk should target that probability.
SRISK[edit]
A financial institution represents a systemic risk if it becomes undercapitalized when the financial system as a whole is undercapitalized. In a single risk factor model, Brownlees and Engle,[16] build a systemic risk measure named SRISK. SRISK can be interpreted as the amount of capital that needs to be injected into a financial firm as to restore a certain form of minimal capital requirement. SRISK has several nice properties: SRISK is expressed in monetary terms and is, therefore, easy to interpret. SRISK can be easily aggregated across firms to provide industry and even country specific aggregates. Last, the computation of SRISK involves variables which may be viewed on their own as risk measures, namely the size of the financial firm, the leverage (ratio of assets to market capitalization), and a measure of how the return of the firm evolves with the market (some sort of time varying conditional beta but with emphasis on the tail of the distribution). Because these three dimensions matter simultaneously in the SRISK measure, one may expect to obtain a more balanced indicator than if one had used either one of the three risk variables individually.
Whereas the initial Brownlees and Engle model is tailored to the US market, the extension by Engle, Jondeau, and Rockinger[17] allows for various factors, time varying parameters, and is therefore more adapted to the European market. One factor captures worldwide variations of financial markets, another one the variations of European markets. Then this extension allows for a country specific factor. By taking into account different factors, one captures the notion that shocks to the US or Asian markets may affect Europe but also that bad news within Europe (such as the news about a potential default of one of the countries) matters for Europe. Also, there may be country specific news that do not affect Europe nor the USA but matter for a given country. Empirically the last factor is found to be less relevant than the worldwide or European factor.
Since SRISK is measured in terms of currency, the industry aggregates may also be related to Gross Domestic Product. As such one obtains a measure of domestic systemically important banks.
The SRISK Systemic Risk Indicator is computed automatically on a weekly basis and made available to the community. For the US model SRISK and other statistics may be found under the Volatility Lab of NYU Stern School website and for the European model under the Center of Risk Management (CRML) website of HEC Lausanne.
Pair/Vine Copulas[edit]
A vine copula can be used to model systemic risk across a portfolio of financial assets. One methodology is to apply the Clayton Canonical Vine Copula to model asset pairs in the vine structure framework. As a Clayton copula is used, the greater the degree of asymmetric (i.e., left tail) dependence, the higher the Clayton copula parameter. Therefore, one can sum up all the Clayton Copula parameters, and the higher the sum of these parameters, the greater the impending likelihood of systemic risk. This methodology has been found to detect spikes in the US equities markets in the last four decades capturing the Oil Crisis and Energy Crisis of the 1970s, Black Monday and the Gulf War in the 1980s, the Russian Default/LTCM crisis of the 1990s, and the Technology Bubble and Lehman Default in the 2000s.[18]
Valuation of assets and derivatives under systemic risk[edit]
Inadequacy of classic valuation models[edit]
One problem when it comes to the valuation of derivatives, debt, or equity under systemic risk is that financial interconnectedness has to be modelled. One particular problem is posed by closed valuations chains, as exemplified here for four firms A, B, C, and D:
B might hold shares of A, C holds some debt of B, D owns a derivative issued by C, and A owns some debt of D.[19]
For instance, the share price of A could influence all other asset values, including itself.
The Merton (1974) model[edit]
Situations as the one explained earlier, which are present in mature financial markets, cannot be modelled within the single-firm Merton model,[20] but also not by its straightforward extensions to multiple firms with potentially correlated assets.[19] To demonstrate this, consider two financial firms, i = 1 , 2 {\displaystyle i=1,2} , with limited liability, which both own system-exogenous assets of a value a i ≥ 0 {\displaystyle a_{i}\geq 0} at a maturity T ≥ 0 {\displaystyle T\geq 0} , and which both owe a single amount of zero coupon debt d i ≥ 0 {\displaystyle d_{i}\geq 0} , due at time T {\displaystyle T} . "System-exogenous" here refers to the assumption, that the business asset a i {\displaystyle a_{i}} is not influenced by the firms in the considered financial system. In the classic single firm Merton model,[20] it now holds at maturity for the equity s i ≥ 0 {\displaystyle s_{i}\geq 0} and for the recovery value r i ≥ 0 {\displaystyle r_{i}\geq 0} of the debt, that
r i = min { d i , a i } {\displaystyle r_{i}=\min\{d_{i},a_{i}\}}
and
s i = ( a i − d i ) + . {\displaystyle s_{i}=(a_{i}-d_{i})^{+}.}
Equity and debt recovery value, s i {\displaystyle s_{i}} and r i {\displaystyle r_{i}} , are thus uniquely and immediately determined by the value a i {\displaystyle a_{i}} of the exogenous business assets. Assuming that the a i {\displaystyle a_{i}} are, for instance, defined by a Black-Scholes dynamic (with or without correlations), risk-neutral no-arbitrage pricing of debt and equity is straightforward.
Non-trivial asset value equations[edit]
Consider now again two such firms, but assume that firm 1 owns 5% of firm two's equity and 20% of its debt. Similarly, assume that firm 2 owns 3% of firm one's equity and 10% of its debt. The equilibrium price equations, or liquidation value equations,[21] at maturity are now given by
r 1 = min { d 1 , a 1 + 0.05 s 2 + 0.2 r 2 } {\displaystyle r_{1}=\min\{d_{1},a_{1}+0.05s_{2}+0.2r_{2}\}}
r 2 = min { d 2 , a 2 + 0.03 s 1 + 0.1 r 1 } {\displaystyle r_{2}=\min\{d_{2},a_{2}+0.03s_{1}+0.1r_{1}\}}
s 1 = ( a 1 + 0.05 s 2 + 0.2 r 2 − d 1 ) + {\displaystyle s_{1}=(a_{1}+0.05s_{2}+0.2r_{2}-d_{1})^{+}}
s 2 = ( a 2 + 0.03 s 1 + 0.1 r 1 − d 2 ) + . {\displaystyle s_{2}=(a_{2}+0.03s_{1}+0.1r_{1}-d_{2})^{+}.}
This example demonstrates, that systemic risk in the form of financial interconnectedness can already lead to a non-trivial, non-linear equation system for the asset values if only two firms are involved.
Over- and underestimation of default probabilities[edit]
It is known that modelling credit risk while ignoring cross-holdings of debt or equity can lead to an under-, but also an over-estimation of default probabilities.[22] The need for proper structural models of financial interconnectedness in quantitative risk management - be it in research or practice - is therefore obvious.
Structural models under financial interconnectedness[edit]
The first authors to consider structural models for financial systems where each firm could own debt of any other firm were Eisenberg and Noe in 2001.[23] In their model, no equity could be cross-owned, and debt had to be of one seniority level, only. In 2002, Suzuki published a model in which equity could be cross-owned as well.[24] His model was developed independently of Eisenberg and Noe's. Elsinger's publication of 2009[25] was the first in which debt could be of different seniorities, hence allowing to model, for instance, senior and junior debt, while correctly accounting for the order of priority. His model allowed equity cross-ownership, too. With Fischer (2014), the first model which also allowed derivatives was introduced.[21] The fact that Elsinger was unaware of Suzuki's publications, Fischer was unaware of Elsinger's, and the fact that other authors re-discovered parts of Suzuki's and Elsinger's results[19][26][27] shows that the research in this field is still somewhat unconsolidated.
Risk-neutral valuation: price indeterminacy and open problems[edit]
Generally speaking, risk-neutral pricing in structural models of financial interconnectedness requires unique equilibrium prices at maturity in dependence of the exogenous asset price vector, which can be random. While financially interconnected systems with debt and equity cross-ownership without derivatives are fairly well understood in the sense that relatively weak conditions on the ownership structures in the form of ownership matrices are required to warrant uniquely determined price equilibria,[19][24][25] the Fischer (2014) model needs very strong conditions on derivatives - which are defined in dependence on any other liability of the considered financial system - to be able to guarantee uniquely determined prices of all system-endogenous liabilities. Furthermore, it is known that there exist examples with no solutions at all, finitely many solutions (more than one), and infinitely many solutions.[19][21] At present, it is unclear how weak conditions on derivatives can be chosen to still be able to apply risk-neutral pricing in financial networks with systemic risk. It is noteworthy, that the price indeterminacy that evolves from multiple price equilibria is fundamentally different from price indeterminacy that stems from market incompleteness.[21]
Factors[edit]
Factors that are found to support systemic risks[28] are:
Economic implications of models are not well understood. Though each individual model may be made accurate, the facts that (1) all models across the board use the same theoretical basis, and (2) the relationship between financial markets and the economy is not known lead to aggravation of systemic risks.
Liquidity risks are not accounted for in pricing models used in trading on the financial markets. Since all models are not geared towards this scenario, all participants in an illiquid market using such models will face systemic risks.
Diversification[edit]
Risks can be reduced in four main ways: avoidance, diversification, hedging and insurance by transferring risk. Systematic risk, also called market risk or un-diversifiable risk, is a risk of a security that cannot be reduced through diversification. Participants in the market, like hedge funds, can be the source of an increase in systemic risk[29] and the transfer of risk to them may, paradoxically, increase the exposure to systemic risk.
Until recently, many theoretical models of finance pointed towards the stabilizing effects of a diversified (i.e., dense) financial system. Nevertheless, some recent work has started to challenge this view, investigating conditions under which diversification may have ambiguous effects on systemic risk.[30][31] Within a certain range, financial interconnections serve as a shock-absorber (i.e., connectivity engenders robustness and risk-sharing prevails). But beyond the tipping point, interconnections might serve as a shock-amplifier (i.e., connectivity engenders fragility and risk-spreading prevails).
Regulation[edit]
One of the main reasons for regulation in the marketplace is to reduce systemic risk.[5] However, regulation arbitrage – the transfer of commerce from a regulated sector to a less regulated or unregulated sector – brings markets a full circle and restores systemic risk. For example, the banking sector was brought under regulations in order to reduce systemic risks. Since the banks themselves could not give credit where the risk (and therefore returns) were high, it was primarily the insurance sector which took over such deals. Thus the systemic risk migrated from one sector to another and proves that regulation of only one industry cannot be the sole protection against systemic risks.[32]
Project risks[edit]
In the fields of project management and cost engineering, systemic risks include those risks that are not unique to a particular project and are not readily manageable by a project team at a given point in time. These risks may be driven by the nature of a company's project system (e.g., funding projects before the scope is defined), capabilities, or culture. They may also be driven by the level of technology in a project or the complexity of a project's scope or execution strategy.[33]
Systemic risk and insurance[edit]
In February 2010, international insurance economics think tank, The Geneva Association, published a 110-page analysis of the role of insurers in systemic risk.[34]
In the report, the differing roles of insurers and banks in the global financial system and their impact on the crisis are examined (See also CEA report, "Why Insurers Differ from Banks").[35] A key conclusion of the analysis is that the core activities of insurers and reinsurers do not pose systemic risks due to the specific features of the industry:
Insurance is funded by up-front premia, giving insurers strong operating cash-flow without the requirement for wholesale funding;
Insurance policies are generally long-term, with controlled outflows, enabling insurers to act as stabilisers to the financial system;
During the hard test of the financial crisis, insurers maintained relatively steady capacity, business volumes and prices.
Applying the most commonly cited definition of systemic risk, that of the Financial Stability Board (FSB), to the core activities of insurers and reinsurers, the report concludes that none are systemically relevant for at least one of the following reasons:
Their limited size means that there would not be disruptive effects on financial markets;
An insurance insolvency develops slowly and can often be absorbed by, for example, capital raising, or, in a worst case, an orderly wind down;
The features of the interrelationships of insurance activities mean that contagion risk would be limited.
The report underlines that supervisors and policymakers should focus on activities rather than financial institutions when introducing new regulation and that upcoming insurance regulatory regimes, such as Solvency II in the European Union, already adequately address insurance activities.
However, during the financial crisis, a small number of quasi-banking activities conducted by insurers either caused failure or triggered significant difficulties. The report therefore identifies two activities which, when conducted on a widespread scale without proper risk control frameworks, have the potential for systemic relevance.
Derivatives trading on non-insurance balance sheets;
Mis-management of short-term funding from commercial paper or securities lending.
The industry has put forward five recommendations to address these particular activities and strengthen financial stability:
The implementation of a comprehensive, integrated and principle-based supervision framework for insurance groups, in order to capture, among other things, any non-insurance activities such as excessive derivative activities.
Strengthening liquidity risk management, particularly to address potential mis-management issues related to short-term funding.
Enhancement of the regulation of financial guarantee insurance, which has a very different business model than traditional insurance.
The establishment of macro-prudential monitoring with appropriate insurance representation.
The strengthening of industry risk management practices to build on the lessons learned by the industry and the sharing experiences with supervisors on a global scale.
Since the publication of The Geneva Association statement, in June 2010, the International Association of Insurance Supervisors (IAIS) issued its position statement on key financial stability issues. A key conclusion of the statement was that, "The insurance sector is susceptible to systemic risks generated in other parts of the financial sector. For most classes of insurance, however, there is little evidence of insurance either generating or amplifying systemic risk, within the financial system itself or in the real economy."[36]
Other organisations such as the CEA and the Property Casualty Insurers Association of America (PCI)[37] have issued reports on the same subject.
Discussion[edit]
Systemic risk evaluates the likelihood and degree of negative consequences to the larger body. The term "systemic risk" is frequently used in recent discussions related to the economic crisis, such as the Subprime mortgage crisis. The systemic risk of a financial institution is the likelihood and the degree that the institution's activities will negatively affect the larger economy such that unusual and extreme federal intervention would be required to ameliorate the effects. The failing of financial firms in 2008 caused systemic risk to the larger economy. Chairman Barney Frank has expressed concerns regarding the vulnerability of highly leveraged financial systems to systemic risk and the US government has debated how to address financial services regulatory reform and systemic risk.[38][39]
See also[edit]
Category:Systemic risk
Bank run
Financial crisis
Macroprudential policy
Modern portfolio theory
Moral hazard
Risk modeling
Taleb Distribution
Glass–Steagall Act
Monetary economics
Internal contradictions of capital accumulation
Systemically important financial institution
Further reading[edit]
Website dedicated to systemic risk: http://www.systemic-risk-hub.org/
Bartram, Söhnke M.; Brown, Gregory W.; Hund, John (December 2007). "Estimating Systemic Risk in the International Financial System". Journal of Financial Economics. 86 (3): 835–869. doi:10.1016/j.jfineco.2006.10.001. SSRN 938707  .
Cont, Rama; Moussa, Amal; Santos, Edosn B (December 2013). "Network structure and systemic risk in banking systems". Handbook of Systemic Risk: 327–368. doi:10.1017/CBO9781139151184.
Fischer, Tom (2014). "NO-ARBITRAGE PRICING UNDER SYSTEMIC RISK: ACCOUNTING FOR CROSS-OWNERSHIP". Mathematical Finance. 24 (1): 97–124. doi:10.1111/j.1467-9965.2012.00526.x. (Published online: 19 Jun 2012)
Gray, Dale F. and Andreas A. Jobst, 2011, "Modelling Systemic Financial Sector and Sovereign Risk," Sveriges Riksbank Economic Review, No. 2, pp. 68–106.
Gray, Dale F. and Andreas A. Jobst, 2009, "Higher Moments and Multivariate Dependence of Implied Volatilities from Equity Options as Measures of Systemic Risk," Global Financial Stability Report, Chapter 3, April (Washington: International Monetary Fund), pp. 128–31.
Gray, Dale F. and Andreas A. Jobst, 2011, "Modeling Systemic and Sovereign Risk," in: Berd, Arthur (ed.) Lessons from the Financial Crisis (London: RISK Books), pp. 143–85.
Gray, Dale F. and Andreas A. Jobst, 2011, "Systemic Contingent Claims Analysis – A Model Approach to Systemic Risk," in: LaBrosse, John R., Olivares-Caminal, Rodrigo and Dalvinder Singh (eds.) Managing Risk in the Financial System (London: Edward Elgar), pp. 93–110.
Gray, Dale F., Andreas A. Jobst, and Samuel Malone, 2010, "Quantifying Systemic Risk and Reconceptualizing the Role of Finance for Economic Growth," Journal of Investment Management, Vol. 8, No.2, pp. 90–110.
Hansen, Lars Peter. "Challenges in Identifying and Measuring Systemic Risk" (PDF). National Bureau of Economic Research. Retrieved 6 March 2013.
Jobst, Andreas A., 2012, "Systemic Risk in the Insurance Sector-General Issues and a First Assessment of Large Commercial (Re-)Insurers in Bermuda," Working paper (March 14).
Williams, Mark T. (March 2010). "Uncontrolled Risk: The Lessons of Lehman Brothers and How Systemic Risk Can Still Bring Down the World Financial System". Mcgraw-Hill.
Zeyu Zheng, Boris Podobnik, Ling Feng and Baowen Li, "Changes in Cross-Correlations as an Indicator for Systemic Risk" (Scientific Reports 2: 888 (2012)).
References[edit]
^ Jump up to: a b c Banking and currency crises and systemic risk, George G. Kaufman (World Bank), Internet Archive
Jump up ^ What is systemic risk anyway?, Gerald P. Dwyer
Jump up ^ Systemic Risk: Relevance, Risk Management Challenges and Open Questions, Tom Daula
Jump up ^ Systemic Risk, Steven L. Schwarcz
^ Jump up to: a b c d Containing Systemic Risk, CRMPG III, August 6, 2008
Jump up ^ What is systemic risk? on YouTube
Jump up ^ What is Systemic Risk
Jump up ^ The Economics of Legal Tender Laws, Jorg Guido Hulsmann (includes detailed commentary on systemic risk inherent in FRB)
Jump up ^ Systemic Risk, Property Casualty Insurers Association of America
Jump up ^ Market Dynamics & Systemic Risk, Milan Boran
Jump up ^ PCI Definition of Systemic Risk
Jump up ^ R Cont, A Moussa and E. B. Santos (2013) Network structure and systemic risk in banking systems. in: Handbook of Systemic Risk, Cambridge University Press, p 327-368.
Jump up ^ Too Big to Fail, Property Casualty Insurers Association of America
Jump up ^ Danielsson, J.; James, K.; Valenzuela, M.; Zer, I. (2016). "Can we prove a bank guilty of creating systemic risk? A minority report". Money Credit and Banking. 48: 795–812. doi:10.1111/jmcb.12318.
Jump up ^ Danielsson, J.; James, K.; Valenzuela, M.; Zer, I. (2016). "Model risk of risk models". Journal of Financial Stability. 23: 79–91. doi:10.1016/j.jfs.2016.02.002.
Jump up ^ Brownlees, C.T., Engle, R.F., 2010. Volatility, correlation and tails for systemic risk measurement, [1]
Jump up ^ Engle, R.F., Jondeau, E., Rockinger, M., 2012. Systemic Risk in Europe
Jump up ^ Low, Rand (2017-05-11). "Vine copulas: modelling systemic risk and enhancing higher-moment portfolio optimisation". Accounting & Finance. 0 (0): 1–18. doi:10.1111/acfi.12274. ISSN 1467-629X.
^ Jump up to: a b c d e Fischer, Tom (2014). "Valuation in the structural model of systemic interconnectedness" (PDF). Presentation at the Frankfurt MathFinance Colloquium, November 27, 2014.
^ Jump up to: a b Merton, R.C. (1974). "On the pricing of corporate debt: the risk structure of interest rates". Journal of Finance. 29 (2): 449–470. doi:10.1111/j.1540-6261.1974.tb03058.x.
^ Jump up to: a b c d Fischer, Tom (2014). "NO-ARBITRAGE PRICING UNDER SYSTEMIC RISK: ACCOUNTING FOR CROSS-OWNERSHIP". Mathematical Finance. 24 (1): 97–124 (Published online: 19 Jun 2012). doi:10.1111/j.1467-9965.2012.00526.x.
Jump up ^ Karl, S.; Fischer, T. (2014). "Cross-ownership as a structural explanation for over- and underestimation of default probability". Quantitative Finance. 14 (6): 1031–1046 (Published online: 18 Nov 2013). doi:10.1080/14697688.2013.834377.
Jump up ^ Eisenberg, L.; Noe, T.H. (2001). "Systemic Risk in Financial Systems". Management Science. 47 (2): 236–249. doi:10.1287/mnsc.47.2.236.9835.
^ Jump up to: a b Suzuki, T. (2002). "Valuing Corporate Debt: The Effect of Cross-Holdings of Stock and Debt" (PDF). Journal of the Operations Research Society of Japan. 45 (2): 123–144.
^ Jump up to: a b Elsinger, H. (2009). "Financial Networks, Cross Holdings, and Limited Liability". Working Paper 156, Oesterreichische Nationalbank, Wien.
Jump up ^ Gouriéroux, C.; Héam, J.-C.; Monfort, A. (2012). "Bilateral exposures and systemic solvency risk". Canadian Journal of Economics. 45 (4): 1273–1309 (Published online: 09 Nov 2012). doi:10.1111/j.1540-5982.2012.01750.x.
Jump up ^ Gouriéroux, C.; Héam, J.-C.; Monfort, A. (2013). "Liquidation equilibrium with seniority and hidden CDO". Journal of Banking & Finance. 37: 5261–5274. doi:10.1016/j.jbankfin.2013.04.016.
Jump up ^ Reto R. Gallati. Risk management and capital adequacy. Retrieved 2008-09-18.
Jump up ^ Systemic risk and hedge funds
Jump up ^ Rethinking the Financial Network
Jump up ^ Paolo Tasca and Stefano Battiston. "Diversification and Financial Stability". SSRN 1878596  .
Jump up ^ Franklin Allen and Douglas Gale. "Systemic Risk and Regulation" (PDF). Retrieved 2008-09-18.
Jump up ^ Systemic Risks in Projects
Jump up ^ Systemic Risk in Insurance—An analysis of insurance and financial stability (2010) The Geneva Association
Jump up ^ CEA (June 2010) Insurance: a unique sector—Why Insurers Differ from Banks
Jump up ^ IAIS (June 2010) International Association of Insurance Supervisors (IAIS) position statement on key financial stability issues
Jump up ^ PCI (2009) Systemic Risk Defined
Jump up ^ Systemic Risk Focus
Jump up ^ Addressing Systemic Risk
[hide]
v
t
e
Financial risk and financial risk management
Categories
Credit risk
Concentration risk
Consumer credit risk
Credit derivative
Securitization
Market risk
Commodity risk (e.g. Volume risk, Basis risk, Shape risk, Holding period risk, Price area risk)
Equity risk
FX risk
Margining risk
Interest rate risk
Volatility risk
Liquidity risk (e.g. Refinancing risk)
Operational risk
Operational risk management
Legal risk
Political risk
Reputational risk
Valuation risk
Other
Profit risk
Settlement risk
Systemic risk
Modeling
Market portfolio
Modern portfolio theory
RAROC
Risk-free rate
Risk parity
Sharpe ratio
Value-at-Risk (VaR) and extensions Profit at risk, Margin at risk, Liquidity at risk
Basic concepts
Diversification
Expected return
Hazard
Hedge
Risk
Risk pool
Systematic risk
Financial economics
Investment management
Mathematical finance
Retrieved from "https://en.wikipedia.org/w/index.php?title=Systemic_risk&oldid=808366186"
Categories:
Systemic risk
Economic systems
Financial crises
Financial markets
Financial risk
Insurance terms
Monetary economics
Hidden categories:
Articles lacking reliable references from January 2016
All articles lacking reliable references
Navigation menu
Personal tools
Not logged in
Talk
Contributions
Create account
Log in
Namespaces
Article
Talk
Variants
Views
Read
Edit
View history
More
Search
Navigation
Main page
Contents
Featured content
Current events
Random article
Donate to Wikipedia
Wikipedia store
Interaction
Help
About Wikipedia
Community portal
Recent changes
Contact page
Tools
What links here
Related changes
Upload file
Special pages
Permanent link
Page information
Wikidata item
Cite this page
Print/export
Create a book
Download as PDF
Printable version
In other projects
Wikimedia Commons
Languages
العربية
Deutsch
Español
فارسی
Français
한국어
Македонски
Bahasa Melayu
日本語
Português
Русский
中文
Edit links
This page was last edited on 2 November 2017, at 12:56.
Text is available under the Creative Commons Attribution-ShareAlike License; additional terms may apply. By using this site, you agree to the Terms of Use and Privacy Policy. Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc., a non-profit organization.
Privacy policy
About Wikipedia
Disclaimers
Contact Wikipedia
Developers
Cookie statement
Mobile view
Enable previews

key: html

type: local

value: div

attrs: id class

values: mw-page-base noprint

values: mw-head-base noprint

value: a

attrs: id class lang

values: firstHeading firstHeading en

values: siteSub noprint

values: jump-to-nav mw-jump

attrs: href title

attrs: role class

values:
note
hatnote navigation-not-searchable

value: img

attrs: alt src width height srcset data-file-width data-file-height

attrs: href class

value: b

attrs: class href

values: Wikipedia:Identifying and using independent sources

value: span

value: small

values:
plainlinks metadata ambox ambox-content
presentation

values: Solidus-Constantius Gallus-thessalonica RIC 149.jpg

values:
/wiki/Currency_risk
mw-redirect
Currency risk

values: float:right;clear:right;width:22.0em;margin:0 0 1.0em 1.0em;background:#f9f9f9;border:1px solid #aaa;padding:0.2em;border-spacing:0.4em 0;text-align:center;line-height:1.4em;font-size:88%;border:1px solid #B2BEB5

values:
/wiki/Flight_to_quality
mw-redirect
Flight to quality

values:
/wiki/Central_banks
mw-redirect
Central banks

values: Edit section: Criticisms of systemic risk measurements

values:
/wiki/Gross_Domestic_Product
mw-redirect
Gross Domestic Product

values:
nofollow
http://vlab.stern.nyu.edu/
external text

values:
nofollow
http://www.crml.ch/
external text

values: Edit section: Valuation of assets and derivatives under systemic risk

values: Edit section: Inadequacy of classic valuation models

values: vertical-align: -0.671ex; width:7.312ex; height:2.509ex;

values: vertical-align: -0.671ex; width:6.329ex; height:2.509ex;

values: vertical-align: -0.671ex; width:5.929ex; height:2.509ex;

values: vertical-align: -0.671ex; width:6.308ex; height:2.509ex;

values: vertical-align: -0.338ex; width:1.647ex; height:2.176ex;

values: vertical-align: -0.671ex; width:2.047ex; height:2.009ex;

values: vertical-align: -0.671ex; width:6.19ex; height:2.509ex;

values: vertical-align: -0.671ex; width:6.148ex; height:2.509ex;

values: vertical-align: -0.838ex; width:16.346ex; height:2.843ex;

values: vertical-align: -0.838ex; width:15.947ex; height:3.009ex;

values: vertical-align: -0.671ex; width:1.908ex; height:2.009ex;

values: vertical-align: -0.671ex; width:1.866ex; height:2.009ex;

values: Edit section: Non-trivial asset value equations

values: vertical-align: -0.838ex; width:34.273ex; height:2.843ex;

values: vertical-align: -0.838ex; width:33.218ex; height:3.009ex;

values: vertical-align: -0.838ex; width:33.875ex; height:3.009ex;

values: Edit section: Over- and underestimation of default probabilities

values: Edit section: Structural models under financial interconnectedness

values: Edit section: Risk-neutral valuation: price indeterminacy and open problems

values: Edit section: Systemic risk and insurance

values:
/wiki/Financial_crisis_of_2007-2008
mw-redirect
Financial crisis of 2007-2008

values:
/wiki/Macroprudential_policy
mw-redirect
Macroprudential policy

values:
/wiki/Risk_modeling
mw-redirect
Risk modeling

values:
/wiki/Taleb_Distribution
mw-redirect
Taleb Distribution

values:
/wiki/Glass%E2%80%93Steagall_Act
mw-redirect
Glass–Steagall Act

values: Internal contradictions of capital accumulation

values: Systemically important financial institution

values:
nofollow
http://www.systemic-risk-hub.org/
external free

values:
nofollow
external text
//ssrn.com/abstract=938707

values:
nofollow
external text
//doi.org/10.1017%2FCBO9781139151184

values:
nofollow
external text
http://www.nber.org/chapters/c12507.pdf

values:
nofollow
external text
http://ssrn.com/abstract=2022062

values:
nofollow
external text
http://mises.org/media/4014

values:
/wiki/Jorg_Guido_Hulsmann
mw-redirect
Jorg Guido Hulsmann

values:
/wiki/Fractional_reserve_banking
mw-redirect
Fractional reserve banking

values:
nofollow
external text
http://ssrn.com/abstract=1620495

values:
nofollow
external text
//doi.org/10.1111%2Fjmcb.12318

values:
nofollow
external text
//doi.org/10.1016%2Fj.jfs.2016.02.002

values:
nofollow
external autonumber
http://ssrn.com/abstract=1611229

values:
nofollow
external text
http://ssrn.com/abstract=2192536

values:
nofollow
external text
//doi.org/10.1111%2Facfi.12274

values:
nofollow
external text
//www.worldcat.org/issn/1467-629X

values:
nofollow
external text
//doi.org/10.1287%2Fmnsc.47.2.236.9835

values:
nofollow
external text
//ssrn.com/abstract=1878596

values:
/wiki/Price_area_risk
mw-redirect
Price area risk

values: nowraplinks hlist collapsible autocollapse navbox-inner

values: Category:Articles lacking reliable references from January 2016

values: Category:All articles lacking reliable references

values: Discussion about edits from this IP address [ctrl-alt-n]

values: A list of edits made from this IP address [ctrl-alt-y]

values: You are encouraged to create an account and log in; however, it is not mandatory

values: You're encouraged to log in; however, it's not mandatory. [ctrl-alt-o]

values:
/wiki/Systemic_risk
View the content page [ctrl-alt-c]
c

values: Discussion about the content page [ctrl-alt-t]

values: p-namespaces navigation vectorTabs p-namespaces-label

values:
p-variants
navigation
vectorMenu emptyPortlet
p-variants-label

values: Past revisions of this page [ctrl-alt-h]

values: p-views navigation vectorTabs p-views-label

values:
p-cactions
navigation
vectorMenu emptyPortlet
p-cactions-label

values:
mw-wiki-logo
/wiki/Main_Page
Visit the main page

values:
/wiki/Main_Page
Visit the main page [ctrl-alt-z]
z

values: Featured content – the best of Wikipedia

values: Find background information on current events

values:
/wiki/Special:Random
Load a random article [ctrl-alt-x]
x

values: portal navigation p-navigation p-navigation-label

values: Guidance on how to use and edit Wikipedia

values: About the project, what you can do, where to find things

values: A list of recent changes in the wiki [ctrl-alt-r]

values: portal navigation p-interaction p-interaction-label

values: List of all English Wikipedia pages containing links to this page [ctrl-alt-j]

values: Recent changes in pages linked from this page [ctrl-alt-k]

values: مخاطر نظمية – Arabic

values: ریسک سیستمی – Persian

values: 체계적 위험 – Korean

values: Системски ризик – Macedonian

values: システミック・リスク – Japanese

values: Системный риск – Russian

values: /static/images/wikimedia-button-1.5x.png 1.5x, /static/images/wikimedia-button-2x.png 2x

values: /static/images/poweredby_mediawiki_132x47.png 1.5x, /static/images/poweredby_mediawiki_176x62.png 2x

values:
suggestions
display: none; font-size: 13px;

values: mediawiki ltr sitedir-ltr mw-hide-empty-elt ns-0 ns-subject page-Systemic_risk rootpage-Systemic_risk skin-vector action-view