Network Theory & Analytics London
The recognition that financial systems can be usefully understood as a complex web of dynamic relations between financial institutions and markets is changing the way central bankers and supervisors work. The key to this new way thinking is network theory.
To this end, Central Banking Publications and Kimmo Soramäki have designed this two-day training course to provide practitioners with the latest developments and good practice methods to utilise network theory and analytics to:
- Identify points of systemic risk
- Analyse risk exposures
- Understand interconnectedness
- Stress-test systems and players
The first day of the course covers the building blocks and essential elements used in analysis: scenario generation and monitoring of risk exposure networks; visualisation of dynamics of market correlations; development of advanced stress testing procedures. The second pivots towards the practical with sessions detailing applications of techniques in: payment analytics through network theory and agent-based modelling; design and oversight of financial market infrastructures; detection and investigation of financial and cyber-crime.
Throughout the course, each session features interactive hand-on exercises that will enable delegates to apply their newly acquired skills to real-life market scenarios, and conduct analysis of data via digital dashboards provided by the tutor.
Learning outcomes and practical applications
By the end of the training, participants will have gained new knowledge and a more comprehensive understanding of:
- Assessing the impact of macro-shocks on capital markets with correlation analytics
- Mapping and visualing of balance sheet interconnections; their use in forecasting
- Montioring of interbank interconnections through exposure networks
- Identification of systemically important banks and risk build-up
- The use of payment data to monitor liquidity and solvency of banks
- Mapping the impact of systemic risk on conglomerates
- Visualing market structures in relation to asset ownership networks
- Extensions to use in cybersecurity and AML/Fraud