GRA · Financial Stability
Spatial financeWhere capital meets hazard, exposure and transition
Resilience and finance readiness
Stability readiness asks whether a shock that starts in the real economy could become a system-wide financial event, and what evidence a stability authority would need to judge that. Financial Stability, a the Global Risks Alliance (GRA) platform, prepares aggregate exposure, linkage and scenario evidence for those authorities and frames the questions. Macroprudential judgement and action stay with central banks, stability committees and supervisors.
Resilience and finance readiness in five parts.
Readiness is not approval.
A readiness file describes a programme's evidence, risks and governance so that an institution can carry out its own review. GRA does not approve, rate, underwrite, lend or invest, and it recommends no counterparty.
What a stability authority reads.
| Question | Evidence |
|---|---|
| Is the shock large relative to system capital and liquidity? | Aggregate exposures from public banking, insurance and fund statistics |
| Does it hit many institutions at once? | Common exposure by geography, sector and counterparty |
| Is there an amplifier? | Leverage, maturity mismatch, margin and fire-sale channels |
| Can the system keep providing critical functions? | Operational dependencies of payments, clearing and credit |
How the process runs.
Process explorer · Process
Resilience and finance readiness: How an economic shock propagates
8 steps·4 stages
Process
Resilience and finance readiness: How an economic shock propagates
Input-output models trace a change in final use or primary input prices through industry linkages, with multipliers for output, income and employment.
01 Shock and linkages
- 01ShockDataset · Financial stability committeeA shock enters as an exogenous change in final uses, or as a change in the price of a primary input.
- 02Input-output linkagesModel · Financial stability committeeBackward linkages tie an industry to its suppliers, forward linkages to its buyers. The model assumes fixed technical input coefficients.
02 Economy
- 03Sector outputModel · Financial stability committeeThe quantity model estimates how a change in final uses affects output. Output multipliers give the production needed per unit of final use.
- 04PricesModel · Financial stability committeeThe price model simulates cost-driven inflation from changes in primary input prices. It assumes perfect competition.
03 People
- 05JobsDataset · Financial stability committeeEmployment multipliers represent jobs created per unit of currency of additional final use.
- 06Household incomeDataset · Financial stability committeeIncome multipliers show how final use changes affect household income. A social accounting matrix shows the circular flow of income.
04 State
- 07Public financesStep · Financial stability committeeEffects on public revenue and spending need government accounts linked to the model, for example in a social accounting matrix.
- 08Policy responseDecision · Financial stability committeeThe responsible party decides on a response. The same linkages can be used to test it.
Outline of an external standard or method, from its public sources. It describes what the framework says, not a record of any run. It does not show that Nexus or any partner performs, certifies or approves a step. A gate is a step of the method, never a Nexus approval. The models assume fixed technical coefficients and are not forecasts.
Sector evidence, never supervisory judgement.
Macroprudential decisions belong to central banks, financial stability committees and supervisors. Financial Stability prepares sector-level evidence and scenario designs they may choose to read. Topic depth at systemic interconnectedness; governance at the Global Risks Forum (GRF) risk governance.
Who sees a readiness file.
A file is released only at the programme owner's written direction, to a party the owner chooses, with no fee tied to any transaction.
Where this page's references lead.
The bodies and documents this page is read against. Status and editions change; each link goes to the issuing body.
Pages in Resilience and finance readiness.
Questions and answers.
Does a readiness file mean finance is available?
Bring an exposure or capital question to the Alliance.
Information and enquiries are open today. An enquiry receives a reference and names the next step; applications, payments, compute allocations and registrations open only when their team, terms and review capacity exist.
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Maps, data and figures on this site are shown for context and general information. They are not advice, forecasts or warnings; the limits of the information are set out in the Disclaimers and Data Notices.