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VERSION:2.0
PRODID:-//Memento EPFL//
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SUMMARY:How Many Down? Toward Understanding Systematic Risk in Networks
DTSTART:20130604T100000
DTEND:20130604T110000
DTSTAMP:20260407T025912Z
UID:065c8b78da3179e8087905e2a077bbc200b906912d229fe74ee21c3a
CATEGORIES:Conferences - Seminars
DESCRIPTION:Prof. Jens Grossklags\, Pennsylvania State University\nThe sys
 tematic risk of a networked system depends to a large extent on the ways i
 n which the network is connected. In this talk\, I will discuss the connec
 tion between a network's systematic risk and its topology\, using a model 
 of risk propagation from the literature on interdependent security games\,
  and focusing on the loss distribution in terms of the number of compromis
 ed nodes. I will show that it is NP-hard to compute this loss distribution
  for an arbitrary network topology. Nevertheless\, it is possible to deriv
 e efficient formulae for loss distributions resulting from homogeneous\, s
 tar\, and E-R random topologies. Further\, I will introduce a simulation a
 lgorithm for approximating the loss distribution in general. Applying the 
 simulation methodology to the study of scale-free networks\, we find syste
 matic risks which distinguish these networks substantively from even their
  own random subnets. This implies on the one hand\, that a random subnet o
 f a network with large systematic risk may still be insurable.  On the ot
 her hand\, the true systematic risk of a networked system may not be disco
 verable by risk assessment methods\, such as incident reporting\, that are
  based on subsampling.
LOCATION:BC 420 https://plan.epfl.ch/?room==BC%20420
STATUS:CONFIRMED
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