The location of new power generation capacity has a significant effect on the need for transmission infrastructure. Newly constructed power plants that are located far from consumption centers increase network losses, investment, and potentially congestion. In addition, lack of public acceptance...

This paper explores insurance as a source of financial system vulnerability. It provides a brief overview of the insurance industry and reviews the risks it faces, as well as several recent failures of insurance companies that had systemic implications. Assimilation of banking-type activities by...

Contingent liabilities have gained prominence in the analysis of public finance. Indeed, history is full of episodes in which the financial position of the public sector is substantially altered-or its true nature uncovered-as a result of government bailouts of financial or nonfinancial...

This paper examines the prudential issues associated with credit concentration in less diversified economies (LDEs), which are identified as countries where one or two sectors represent a large share of exports. In preparing this analysis, the characteristics of their financial and banking...

The paper discusses the limits to market-based risk transfer in the financial system and the implications for the management of systemic long-term financial risks. Financial instruments or markets to transfer and better manage these risks across institutions and sectors are, as yet, either...

Today supply chains leverage their partner's competencies and in the process also inherit the risks associated with various links of a supply chain. Although it is impossible to completely eliminate various risks, an environment can be created which helps to effectively mitigate risk. The most...