Using Visual Analytics to Enhance Data Exploration and Knowledge Discovery in Financial Systemic Risk Analysis: The Multivariate Density Estimator

Analyzing and managing the risks in financial systems is necessary to maintain healthy global financial systems and economic wellbeing. However, the complexity of the financial system and the heterogeneity and volume of data sources needed for financial systemic risk analysis are currently overwhelming. Visual Analytics tools can be used to provide macroprudential supervisors with greater visibility into the health of financial systems by augmenting their information processing capabilities. To this end, we present a novel prototype design for a visual analytics tool that implements the multivariate density estimator of financial systemic risk, explaining how it addresses macroprudential supervisors’ need for enhanced data exploration and knowledge discovery capabilities.