Simultaneous failure of just two low-risk firms can cause up to 257 times the systemic damage of their separate failures, driven by the breakdown of supplier substitution.
A Complex Systems Perspective on Macroprudential Regulation
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Catastrophic disruption cascades driven by the nonlinearity of systemic risk
Simultaneous failure of just two low-risk firms can cause up to 257 times the systemic damage of their separate failures, driven by the breakdown of supplier substitution.