SHM and Global Financial Stability: An Analysis of Systemic Risk and Structural Health Monitoring in Financial Markets

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Main Author: López Miranda, Jorge Alexander
Format: Recurso digital
Language:English
Published: Zenodo 2026
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author López Miranda, Jorge Alexander
author_facet López Miranda, Jorge Alexander
contents <h2>Abstract: SHM and Global Financial Stability</h2> <p><strong>Title:</strong> <em>SHM and Global Financial Stability: Integrating Structural Health Monitoring Frameworks into Systemic Risk Assessment</em></p> <p><strong>Abstract:</strong> This study explores the innovative cross-disciplinary application of <strong>Structural Health Monitoring (SHM)</strong> methodologies—traditionally utilized in civil and aerospace engineering—to the domain of <strong>Global Financial Stability</strong>. As global financial markets evolve into increasingly complex and interdependent networks, traditional econometric models often struggle to capture the real-time degradation of market "integrity" prior to a systemic collapse.</p> <p>This research proposes an analytical framework that treats the global financial architecture as a complex structure subject to stress, fatigue, and environmental shocks. Key areas of investigation include:</p> <ul> <li> <p><strong>Real-Time Anomaly Detection:</strong> Leveraging SHM sensor-data logic to identify early-warning signals in high-frequency financial data, such as abnormal liquidity patterns or asset price dislocations.</p> </li> <li> <p><strong>Damage Prognosis and Propagation:</strong> Modeling how "localized damage" (e.g., the failure of a specific financial institution or market segment) propagates through the global network, leading to potential systemic failure.</p> </li> <li> <p><strong>Systemic Resilience Metrics:</strong> Developing indicators to measure the "residual strength" of the financial system after macroeconomic shocks.</p> </li> </ul> <p>The findings suggest that adapting SHM’s non-destructive evaluation techniques to financial monitoring can significantly enhance <strong>macroprudential supervision</strong>. By providing a more granular view of market health, this framework offers policymakers and central banks a robust toolset for mitigating contagion and ensuring long-term global financial stability.</p>
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publishDate 2026
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spellingShingle SHM and Global Financial Stability: An Analysis of Systemic Risk and Structural Health Monitoring in Financial Markets
López Miranda, Jorge Alexander
<h2>Abstract: SHM and Global Financial Stability</h2> <p><strong>Title:</strong> <em>SHM and Global Financial Stability: Integrating Structural Health Monitoring Frameworks into Systemic Risk Assessment</em></p> <p><strong>Abstract:</strong> This study explores the innovative cross-disciplinary application of <strong>Structural Health Monitoring (SHM)</strong> methodologies—traditionally utilized in civil and aerospace engineering—to the domain of <strong>Global Financial Stability</strong>. As global financial markets evolve into increasingly complex and interdependent networks, traditional econometric models often struggle to capture the real-time degradation of market "integrity" prior to a systemic collapse.</p> <p>This research proposes an analytical framework that treats the global financial architecture as a complex structure subject to stress, fatigue, and environmental shocks. Key areas of investigation include:</p> <ul> <li> <p><strong>Real-Time Anomaly Detection:</strong> Leveraging SHM sensor-data logic to identify early-warning signals in high-frequency financial data, such as abnormal liquidity patterns or asset price dislocations.</p> </li> <li> <p><strong>Damage Prognosis and Propagation:</strong> Modeling how "localized damage" (e.g., the failure of a specific financial institution or market segment) propagates through the global network, leading to potential systemic failure.</p> </li> <li> <p><strong>Systemic Resilience Metrics:</strong> Developing indicators to measure the "residual strength" of the financial system after macroeconomic shocks.</p> </li> </ul> <p>The findings suggest that adapting SHM’s non-destructive evaluation techniques to financial monitoring can significantly enhance <strong>macroprudential supervision</strong>. By providing a more granular view of market health, this framework offers policymakers and central banks a robust toolset for mitigating contagion and ensuring long-term global financial stability.</p>
title SHM and Global Financial Stability: An Analysis of Systemic Risk and Structural Health Monitoring in Financial Markets
url https://doi.org/10.5281/zenodo.19687605