Other tools are designed to condense the information into risk dashboards, colour coded systems or web diagrams to present an overview of the highly complex picture. More sophisticated methods include stress tests to study the effects of different scenarios and specified econometric models capturing potentially destabilising feedback loops and systemic effects. Clearly, these tools are important and helpful in preventing and managing systemic risks.
It is true that digitisation has not spread with the same speed across the globe. Also, regulations differ. My response is that we need this exchange precisely because of our divergent experiences. Given that digital innovations may be “black boxes", learning from each other might help to contain threats from the outset. That way, regulation will not lag one step behind financial innovation.