New metric predicts financial crises before they happen - Net Systemic Risk!
The article introduces a new concept called "net systemic risk" in the financial world. It focuses on understanding the risk posed by individual financial institutions beyond the overall market movements. The researchers developed two metrics, NSR and RevNSR, to measure this new type of risk. They found that these metrics could predict the pressure on the financial system during the 2007-2009 financial crisis.