The Network Challenge: Strategy, Profit, and Risk in an Interlinked World

Part VINetwork-Based Sources of Risk and Profitability

Networks transform our view of risks, from protecting a single firm to dealing with risks from interdependent webs of firms. In Chapter 21, Franklin Allen and Ana Babus examine how a network perspective can help us understand and address financial contagion and freezes in the interbank market. In Chapter 22, Howard Kunreuther explores how interdependent security risks such as airline security—in which the network is only as strong as its weakest link—often require interdependent solutions. In Chapter 23, Paul Kleindorfer and Ilias Visvikis examine risk and volatility of global logistics networks, and changes in logistics and financial instruments such as derivatives used to address these ...