Connected Risks in a Connected World
The speed at which COVID-19 has spread all over the globe has once again exposed how connected our world is: an event taking place in a single location is able to affect the rest of the planet in a short time. More and more often, these events are extreme, like exceptionally heavy rainfalls or unprecedented heat waves. Also, financial markets undergo similar shocks, with abrupt raises and falls in the value of stocks and currencies. In an increasingly connected world, these extreme phenomena are inevitably connected too. Hence, a joint analysis of extreme events, both natural and financial, is now more needed than ever.