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Systemic Risk Management. Cognitive Perspective (Zarzadzanie ryzykiem systemu finansowego. Perspektywa poznawcza)

Author

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  • Jan K. Solarz

    (Spoleczna Akademia Nauk)

Abstract

This article argues that in order to manage systemic risk, we need more sophisticated and realistic cognitive framework through which to analyse its dynamics and costs. We used macroprudential and microprudential policy to manage explicit systemic risk. Systemic risk is a propagation risk, where shocks spread in time and across sectors. Whilst there are no easy answers, employing this conception of systemic risk management provides an alternative cognitive framework. The narrative approach developed in this article has two dimensions: theoretical tradition in economics (political economics, mathematical economics, institutional economics) and key concepts (rent-seeking, external costs, complexity, nano-finance). To that end, the article develops a social conception of systemic risk, drawing on institutionalist theories.

Suggested Citation

  • Jan K. Solarz, 2015. "Systemic Risk Management. Cognitive Perspective (Zarzadzanie ryzykiem systemu finansowego. Perspektywa poznawcza)," Problemy Zarzadzania, University of Warsaw, Faculty of Management, vol. 13(55), pages 30-46.
    • Handle: RePEc:sgm:pzwzuw:v:13:i:55:y:2015:p:30-46
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    References listed on IDEAS

    as
    1. Krzysztof Jajuga, 2014. "Systemic Risk and Financial Stability in Insurance: Macroprudential Policy Concerns," Palgrave Macmillan Books, in: Jan Monkiewicz & Marian Małecki (ed.), Macroprudential Supervision in Insurance, chapter 6, pages 136-152, Palgrave Macmillan.
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    More about this item

    Keywords

    systemic risk; institutions; models; cognitive finance;
    All these keywords.

    JEL classification:

    • G - Financial Economics
    • D - Microeconomics

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