The ECOB Regulatory Instrument for Systemic Risk Heat Mapping: Data Simulation Results
Posted: 27 Sep 2010
Date Written: September 26, 2010
This paper uses the ECOB (Evolving Collective Operational Behaviour) model of participant interactions in the global financial system, with Design Science Research Methods and Survey Research Methods, to contribute a regulatory instrument for directing attention to potential areas of increasing systemic risk. Then it presents test results for this instrument, generated by simulating regulatory returns from 2006-2010 annual reports using Archival Research techniques and specified data generation algorithms. From which new opportunities are considered that enable preemptive regulatory action for systemic risk mitigation.
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