I will start by briefly describing the notion of systemic risk and various approaches used to identify and measure it. I will then discuss two state-of-the-art quantitative models that we have developed to improve our assessment of risks to the Canadian financial system. The multiple dimensions of systemic risk Systemic, or system-wide, risk goes beyond individual institutions and markets.
It is the risk that the financial system as a whole becomes impaired and that the provision of key financial services breaks down, with potentially serious consequences for the real economy. 1  Bank of Canada annual conference on “The Evolving Financial System and Public Policy” held in December 2003 in Ottawa.