Network science and contagion
Network science and contagion study how the structure of connections among entities shapes the spread of failures, information and disease. It provides tools to analyse interdependent infrastructure, supply chains and financial systems. Systems Science and Modelling stewards this page for the Nexus Consortium.
- Institution
- The Global Centre for Risk and Innovation (GCRI)
- Service level
- R0: information and enquiries
Network analysis
GCRI · Network science and contagion · Run R-3937
Dependency graph
nodes: assets · edges: dependencies
Most central nodes
| N3 | 0.19 | 5 | Critical |
| N4 | 0.16 | 12 | Normal |
| N5 | 0.37 | 7 | Normal |
| N6 | 0.36 | 12 | Normal |
Cascade size under removal
GCRI · Network analysisNetwork analysis, in outline: domain structure with placeholder names and illustrative values, not a record.
The short answer.
Network science and contagion study how the structure of connections among entities shapes the spread of failures, information and disease. Network science identifies critical nodes and pathways through which shocks propagate across sectors. In the Nexus Consortium, Systems Science and Modelling stewards its canonical page, and 14 other platforms apply it, including Energy Nexus and Systemic Risk Management.
Systemic exposure in the Gulf of Mexico coast.
Where people and networks concentrate, the exposure through which shocks travel between systems, shown for the Gulf of Mexico coast as an example geography for this subject.
What network science and contagion covers.
- 01
Core methods
graph analysis; centrality measures; cascade and contagion modelling; multilayer network analysis; percolation analysis; community detection.
- 02
Data and instruments
infrastructure topology data; trade and supply chain links; interbank exposure data; contact and mobility data; communication networks.
- 03
Validation
Models are checked by reproducing observed cascades and outbreaks. Robustness of results to missing or uncertain links is tested.
- 04
Limits
Network data are often incomplete or confidential. Static network models may miss adaptive behaviour during cascades.
- 05
Use in risk decisions
Network science identifies critical nodes and pathways through which shocks propagate across sectors. It informs targeted protection and diversification to limit cascades.
Network methods are used in supervision, infrastructure and epidemiology.
| Reference | What it sets |
|---|---|
| Interbank network analysis in supervisory practice | Contagion in financial systems |
| Infrastructure interdependency modelling | Cascading failure |
| Contact network models in epidemiology | Transmission |
Contagion through links.
Network science models how failures propagate along dependencies. Results are sensitive to network data quality: missing links can hide contagion paths and spurious links can exaggerate them. Multilayer networks represent dependencies across systems.
- Report network data completeness.
- Use multilayer models for cross-system dependencies.
- Test sensitivity to missing links.
- Applications on Systems Modelling and Trade and Strategic Resources.
Platforms that apply this method.
- Energy NexusInstitutionGCRI
- Systemic Risk ManagementInstitutionGCRI
- Critical InfrastructureInstitutionGCRI
- Trade and Strategic ResourcesInstitutionGCRI
- Cybersecurity and Digital ResilienceInstitutionGCRI
- Economic DevelopmentInstitutionGCRI
- Information Integrity and Public TrustInstitutionGRF
- Banking NexusInstitutionGRA
- Capital Markets NexusInstitutionGRA
- Financial StabilityInstitutionGRA
- Payments and Market InfrastructureInstitutionGRA
- Financial Cyber and Operational ResilienceInstitutionGRA
- Financial Crime and Fraud RiskInstitutionGRA
- Private CreditInstitutionGRA
- Systems Science and ModellingInstitutionGCRI
Who maintains this page.
Systems Science and Modelling stewards network science and contagion: it keeps this description current and reviews how the method is applied across the platforms.
Terms used on this page.
Each term as this page uses it. Where a standard-setting body defines the term, the wording follows that body.
| Term | Definition |
|---|---|
| Fire sale | Forced selling of assets at depressed prices, which lowers the value of the same assets held by others. |
| Overlapping portfolios | Common holdings across institutions that transmit losses through prices. |
| Network centrality | A measure of how important a node is in a network, such as how many exposures pass through it. |
| Multilayer network | A network with several layers of links, such as lending, derivatives and holdings, between the same institutions. |
Where this page's references lead.
The bodies and documents this page is read against. Status and editions change; each link goes to the issuing body.
Where this page leads across the Consortium.
- Network science for energy interdependenciesGCRIApplied in Energy Nexus.
- Network science for systemic riskGCRIApplied in Systemic Risk Management.
- Network science for infrastructureGCRIApplied in Critical Infrastructure.
- Network science for supply chainsGCRIApplied in Trade and Strategic Resources.
- Network science for cybersecurityGCRIApplied in Cybersecurity and Digital Resilience.
- Network science for economiesGCRIApplied in Economic Development.
- Network science and contagion for information integrity and public trustGRFApplied in Information Integrity and Public Trust.
- Network science for banking contagionGRAApplied in Banking Nexus.
- Network science for capital marketsGRAApplied in Capital Markets Nexus.
- Network science and contagion for financial stabilityGRAApplied in Financial Stability.
- Network science and contagion for payments and market infrastructureGRAApplied in Payments and Market Infrastructure.
- Network science and contagion for financial cyber and operational resilienceGRAApplied in Financial Cyber and Operational Resilience.
- Network science and contagion for financial crime and fraud riskGRAApplied in Financial Crime and Fraud Risk.
- Network science and contagion for private creditGRAApplied in Private Credit.
- Network science methodsGCRIApplied in Systems Science and Modelling.
Questions and answers.
Why does one institution host every method page?
How do I suggest a correction to a method page?
Around GCRI.
Start with an enquiry.
The current service level is R0: information and enquiries. An enquiry receives a reference and names the next step; applications, payments, compute allocations and registrations open only when their team, terms and review capacity exist.