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What We Learn About Global Systemic Risk With Neurosciences, Armando F. Rocha

Armando F Rocha

Financial market crises are frequent events that trigger large financial losses and represent important global systemic risk (GSR). GSR forecasting is, therefore, a necessity to avoid the collapse of the global financial market. Understanding GSR dynamics is imperative if GSR is to be forecasted and controlled. Traditional finance theories have developed many tools for risk management that proved to be unreliable in the case of the 2008 Crisis. Recent results on financial decision-making provided by Neurosciences have being used to model the stock market dynamics. This approach is used, here, to model stock price evolution in 20 bourses during the …