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This is a joint event with the CFA. The speaker, Mark P. Kritzman, is a Senior Lecturer in Finance at the MIT Sloan School of Management.
In this presentation, Mark introduces his methodology for measuring systemic importance. The absorption ratio provides an implied measure of systemic risk. It is then extended to determine an entities centrality – this centrality measure capture’s an entity’s vulnerability to failure, its connectivity to other entities, and the risk of the entities to which it is connected.