Related Experiment Video
Updated: Sep 23, 2025
05:37
An R-Based Landscape Validation of a Competing Risk Model
Published on: September 16, 2022
2.2K
Quantifying firm-level economic systemic risk from nation-wide supply networks
Christian Diem1,2, András Borsos1,3,4, Tobias Reisch1,5
1Complexity Science Hub Vienna, Josefstädter Strasse 39, 1080, Vienna, Austria.
Scientific Reports
|May 13, 2022
Summary
A small fraction of companies pose a significant economic systemic risk (ESR) to national production. Understanding firm-level network positions, not just size, is crucial for assessing and mitigating this risk.
Area of Science:
- Economics
- Network Science
- Business Management
Background:
- COVID-19 highlighted supply chain vulnerabilities and complex production interdependencies.
- Quantitative assessment of individual firm impact on network production fragility was lacking.
Purpose of the Study:
- To develop a novel approach for computing economic systemic risk (ESR) at the firm level.
- To quantitatively assess the impact of individual companies on national economic production within supply networks.
Main Methods:
- Construction of a firm-level production network using a unique value-added tax dataset.
- Development and application of a novel method to compute ESR for all firms.
Main Results:
- Identified that 0.035% of companies possess extraordinarily high ESR, potentially disrupting 23% of national economic production.
- Demonstrated that firm position within the production network, not size, substantially influences ESR.
- Showed aggregated data limitations for reliable ESR assessment.
Conclusions:
- Firm-level network analysis is essential for understanding and managing economic systemic risk.
- Supply chain redundancies and network topology adjustments can mitigate ESR for critical firms.
Related Concept Videos
01:17Design Example: Analyzing Capacity Contours for Flood Risk Assessment
113
Flood risk assessment involves careful planning and analysis to ensure the safety of communities near water retention structures. Capacity contours are a vital tool in this process, as they illustrate the potential spread of water at specific levels in a given area. In the context of building a bund across a small valley, these contours play a critical role in evaluating the safety of nearby residential areas.In this example, the bund is intended to store stormwater in the valley. The engineers...
113
01:28Global Regulatory Systems
91
Global regulatory systems in bacteria enable rapid and coordinated responses to environmental changes by integrating sensory inputs with gene expression, ensuring efficient adaptation to fluctuating conditions. Key global regulatory mechanisms include regulons, two-component systems, sigma factors, and secondary messengers.Regulons and Global RegulatorsA regulon is a collection of genes and operons controlled by a common global regulator. These regulators enable bacteria to prioritize resource...
91
01:10Propagation of Uncertainty from Systematic Error
919
The atomic mass of an element varies due to the relative ratio of its isotopes. A sample's relative proportion of oxygen isotopes influences its average atomic mass. For instance, if we were to measure the atomic mass of oxygen from a sample, the mass would be a weighted average of the isotopic masses of oxygen in that sample. Since a single sample is not likely to perfectly reflect the true atomic mass of oxygen for all the molecules of oxygen on Earth, the mass we obtain from this...
919
01:25Multimachine Stability
238
Multimachine stability analysis is crucial for understanding the dynamics and stability of power systems with multiple synchronous machines. The objective is to solve the swing equations for a network of M machines connected to an N-bus power system.
In analyzing the system, the nodal equations represent the relationship between bus voltages, machine voltages, and machine currents. The nodal equation is given by:
In analyzing the system, the nodal equations represent the relationship between bus voltages, machine voltages, and machine currents. The nodal equation is given by:
238
01:12Relative Risk
385
Relative risk (RR) is a statistical measure commonly used in epidemiology to compare the likelihood of a particular event occurring between two groups. This metric is important for evaluating the relationship between exposure to a specific risk factor and the probability of a particular outcome. It plays a crucial role in medical research, public health studies, and risk assessment. Relative risk quantifies how much more (or less) likely an event is to occur in an exposed group compared to an...
385
00:59Propagation of Uncertainty from Random Error
1.1K
An experiment often consists of more than a single step. In this case, measurements at each step give rise to uncertainty. Because the measurements occur in successive steps, the uncertainty in one step necessarily contributes to that in the subsequent step. As we perform statistical analysis on these types of experiments, we must learn to account for the propagation of uncertainty from one step to the next. The propagation of uncertainty depends on the type of arithmetic operation performed on...
1.1K