A Review of Micro-Based Systemic Risk Research from Multiple Perspectives.

Area of Science:

• Economics
• Finance
• Risk Management

Background:

• The Covid-19 pandemic has significantly impacted the global economy, raising concerns about systemic risk.
• Interpreting systemic risk through the lens of financial crisis frameworks is crucial during this period.
• Existing research on systemic risks provides potential precautions for current global economic challenges.

Purpose of the Study:

• To verify the origins of systemic risk research.
• To synthesize previous research and establish a clear definition of systemic risk.
• To explore the micro-foundations and measurement methods of systemic risk.

Main Methods:

• Literature review of systemic risk and financial crisis research.
• Comparison of systemic risk literature with financial crisis research to identify trends.
• Categorization of systemic risk research by financial sub-disciplines and interdisciplinary methods.

Main Results:

• Increased focus on the micro-foundations of systemic risk in recent literature.
• Active research in systemic risk measurement and the integration of interdisciplinary approaches.
• Identification of key research areas and future expansion directions in systemic risk.

Conclusions:

• A comprehensive understanding of systemic risk requires examining its origins, micro-foundations, and measurement.
• Interdisciplinary methods are enhancing the study of systemic risk.
• This review provides a structured overview for scholars and predicts future research trajectories in systemic risk.