Study Data from State University of Jakarta Update Knowledge of Risk Management (Macroeconomics of Systemic Risk: Transmission Channels and Technical Integration): Insurance – Risk Management

2022 OCT 11 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Fresh data on risk management are presented in a new report. According to news reporting from State University of Jakarta by NewsRx journalists, research stated, “The avenue to find a balanced assessment of systemic financial institutions needs the integration of macro and micro granular datasets.”

Financial supporters for this research include Australia Awards.

Our news journalists obtained a quote from the research from State University of Jakarta: “This paper investigates how macroeconomic shocks affect systemic risk through several transmission channels. Employing Indonesia datasets over 2008-2019, we regressed three market models: CoVaR, MES, and SRISK using fixed effect, random effect, GARCH(1,1), and finite mixture models. The findings show that stock beta, market index, and exchange rate volatility amplify the systemic risk while the liquidity spread outcome varies due to different of model variables and the deepness of the country’s financial market.”

According to the news reporters, the research concluded: “We propose a practical systemic risk assessment framework and samples of technical integration to capture the overall risk endogenously and externally expose the systemically important financial institutions.”

For more information on this research see: Macroeconomics of Systemic Risk: Transmission Channels and Technical Integration. Risks, 2022,10(174):174. (Risks - http://www.mdpi.com/journal/risks). The publisher for Risks is MDPI AG.

A free version of this journal article is available at https://doi.org/10.3390/risks10090174.

Our news editors report that additional information may be obtained by contacting Mohamad Rizan, Faculty of Economcis, State University of Jakarta, East Jakarta 13220, Indonesia. Additional authors for this research include Muhammad Zulkifli Salim, Saparuddin Mukhtar, Kevin Daly.

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