Systemic Risks and Sustainability

The core objective of the Center is to measure and manage systemic risks, which include environmental and financial risks.


In an increasingly interconnected world, we are facing systemic events that occur very infrequently but whose impacts may be catastrophic on society at large. These events include climate change and financial crises as typical examples.

The missions of the Center are to create and disseminate knowledge on these systemic risks and on the solutions that we identify to mitigate their impacts. The Center has four objectives.

1. A first objective is to measure extreme risks related to climate change. We propose statistical models of the mechanism underlying these events in complex systems and provide accurate quantitative assessment of their risks.

2. The second objective is to understand and help manage the interaction between climate change and the economy. We develop structural models of the global environment can be used to design optimal decisions.

3. We produce measures of systemic risk (SRISK) for European institutions using an advanced statistical methodology. We also propose new approaches to measure bank systemic risks.

4. Finally, we analyze and develop sustainable investment strategies that allow investors to focus on particular dimensions of sustainability. We plan to cover all asset classes (stocks, bonds, real estate, and funds).