The development of these models is in a nascent stage and the learning curve is very steep. Identifying and assessing systemic risks requires a broad and deep information basis and a wide range of tools to process the relevant information as well as analytical tools and techniques.
While fertile research on these issues is underway, especially since the crisis, the progress has been slow given the large mass of uncertainties – both “known” and “unknown”. Let me briefly highlight some of these. First, while the notion of systemic risks is clear, there is, as yet, as elucidated earlier, no universally accepted definition of systemic risk.