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GCRI · Systemic Risk Management

Cascades and interdependence

Systemic risk arises when systems depend on one another, so that a failure in one travels into others: a power outage stops water pumping, a port closure stalls manufacturing, a cyber incident halts payments. Cascades can amplify a modest shock into a large loss, or be absorbed by buffers and substitutes. This page sets out how cascades develop and propagate, how dependencies are mapped, and what the evidence serves for those responsible for connected systems.

01Register

Cascades and interdependence on the record.

02The question

Cascades and interdependence: how the risk develops.

Network, common-cause and correlated failures. The dossier below sets out how the risk develops, what is measured, where the data come from, how it is modelled and who decides.

Mechanism

Failure propagates through dependency

When one system supplies another with power, data, materials or services, its failure removes an input the second system needs. Each link adds a path, and paths combine into chains that cross sectors and borders.

Mechanism

Buffers set the timing

Stocks, backup generation, redundant routes and spare staff delay the effect of a lost input. The cascade arrives when the first buffer runs out, which can be hours or months after the trigger.

Mechanism

Concentration creates single points

Where many systems rely on the same supplier, hub, cloud region or chokepoint, one failure reaches all of them at once. Concentration often grows unseen because each dependent made a reasonable choice alone.

Mechanism

Feedback amplifies the loss

Losses can feed back: an outage reduces revenue, which cuts maintenance, which raises the chance of the next outage. Reinforcing loops turn a contained event into a longer and wider one.

03Geography

Hazards and exposure in Asia.

Population density, flood water and night lights over Asia, from NASA GIBS. Each layer carries its own date.

The interactive map needs JavaScript; the layer list and sources are below.

Layers 3

Hazards and exposure, for this page

About this layer
Evidence
Estimated
Source
Gridded Population of the World v4.11 (NASA SEDAC (CIESIN, Columbia University))
Provider
NASA SEDAC (CIESIN, Columbia University)
Licence
CC BY 4.0
Vintage
null; Census-based estimate, static (2020)
Resolution
about 1 km grid
Uncertainty
Census-based estimate of people per square kilometre in 2020, shown as exposure context; not a count of people affected by any hazard.
Reached through
gibs.earthdata.nasa.gov, only after you allow the live map
About this layer
Evidence
Observed (clouds leave gaps)
Source
VIIRS Global Flood Product (NASA LANCE)
Provider
NASA LANCE
Licence
NASA open data
Vintage
daily; Satellite detection; clouds leave gaps
Newest at build
2026-10-14
Resolution
about 250 m grid
Uncertainty
Satellite detection; clouds leave gaps. Satellite or model raster as the provider publishes it. Clouds, swath gaps and retrieval error leave gaps and noise; values are indicators, not measurements at a place.
Reached through
gibs.earthdata.nasa.gov, only after you allow the live map
About this layer
Evidence
Observed
Source
VIIRS Black Marble (VNP46A2) (NASA LAADS DAAC)
Provider
NASA LAADS DAAC
Licence
NASA open data
Vintage
daily; Satellite radiance, corrected for moonlight and atmosphere
Newest at build
2026-10-12
Resolution
about 500 m grid
Uncertainty
Satellite night-time radiance for the date shown; lights are a proxy for electricity use and outages, not a measurement of supply or access.
Reached through
gibs.earthdata.nasa.gov, only after you allow the live map
About this layer
Evidence
Observed
Source
VIIRS NOAA-20 corrected reflectance (NASA LANCE)
Provider
NASA LANCE
Licence
NASA open data
Vintage
daily; Satellite image
Newest at build
2026-10-14
Resolution
about 250 m grid
Uncertainty
Satellite image. Satellite or model raster as the provider publishes it. Clouds, swath gaps and retrieval error leave gaps and noise; values are indicators, not measurements at a place.
Reached through
gibs.earthdata.nasa.gov, only after you allow the live map
About this layer
Evidence
Observed (clouds and overpass timing leave gaps)
Source
VIIRS NOAA-20 375 m (FIRMS) (NASA LANCE FIRMS)
Provider
NASA LANCE FIRMS
Licence
NASA open data
Vintage
daily; Satellite detection; clouds and overpass timing leave gaps
Newest at build
2026-10-13
Resolution
about 500 m grid
Uncertainty
Satellite hot-spot detections for the day shown, including gas flares and industrial heat; not a confirmed fire, an incident report or a warning.
Reached through
gibs.earthdata.nasa.gov, only after you allow the live map
About this layer
Evidence
Observed (persistent cloud still leaves gaps)
Source
VIIRS NOAA-20 Level 3, 8-day (NASA LANCE)
Provider
NASA LANCE
Licence
NASA open data
Vintage
8-day; Satellite 8-day composite; persistent cloud still leaves gaps
Newest at build
2026-09-14
Resolution
about 1 km grid
Uncertainty
Satellite skin temperature of the ground over the 8 days ending on the date shown, a heat exposure indicator; not air temperature, heat index or a heat warning.
Reached through
gibs.earthdata.nasa.gov, only after you allow the live map

Latest available

NASA GIBS / EOSDIS · ASTER GDEM (METI, NASA) · Blue Marble (NASA) · © OpenStreetMap contributors (ODbL) · Natural Earth

Loading the latest NASA imagery.

Drag to move. Ctrl or ⌘ and scroll, pinch or the buttons to zoom; hover for the values under the pointer; reset returns to the region.

Hazards and exposure, framed on Asia.Satellite and model products as NASA publishes them, each with its own date. They are indicators, not assessments of any place.

Data: NASA GIBS · ASTER GDEM · Blue Marble · © OpenStreetMap contributors · Natural Earth · NASA EONET · U.S. Geological Survey · NASA JPL OPERA DIST-ALERTSources and licences

  • We acknowledge the use of imagery provided by services from NASA’s Global Imagery Browse Services (GIBS), part of NASA’s Earth Science Data and Information System (ESDIS). Colours redrawn from the published colour map; values averaged into hexagonal cells where shown (modified). NASA open data
  • We acknowledge the use of imagery provided by services from NASA’s Global Imagery Browse Services (GIBS), part of NASA’s Earth Science Data and Information System (ESDIS). Colours redrawn from the published colour map; values averaged into hexagonal cells where shown (modified). NASA open data
  • Center for International Earth Science Information Network (CIESIN), Columbia University. 2018. Gridded Population of the World, Version 4 (GPWv4): Population Density, Revision 11. NASA Socioeconomic Data and Applications Center (SEDAC). Licensed under CC BY 4.0. Colours redrawn from the published colour map; values averaged into hexagonal cells where shown (modified). doi:10.7927/H49C6VHW. CC BY 4.0
  • VIIRS near-real-time products (flood, land surface temperature, snow cover, corrected reflectance), NASA LANCE; imagery via NASA GIBS. Colours redrawn from the published colour map; values averaged into hexagonal cells where shown (modified). NASA open data
  • VIIRS Black Marble night-time lights, NASA Goddard Space Flight Center; distributed by the NASA Level-1 and Atmosphere Archive and Distribution System (LAADS DAAC); imagery via NASA GIBS. Colours redrawn from the published colour map; values averaged into hexagonal cells where shown (modified). NASA open data
  • NASA Fire Information for Resource Management System (FIRMS), VIIRS 375 m active fire product, NASA LANCE; vector tiles via NASA GIBS. Colours redrawn from the published colour map; values averaged into hexagonal cells where shown (modified). NASA open data
  • ASTER GDEM is a product of METI and NASA (ASTER Global Digital Elevation Model V003, NASA LP DAAC); imagery via NASA GIBS. Colours redrawn from the published colour map; values averaged into hexagonal cells where shown (modified). Cite as: NASA/METI/AIST/Japan Spacesystems and U.S./Japan ASTER Science Team (2019). ASTER Global Digital Elevation Model V003. doi:10.5067/ASTER/ASTGTM.003. NASA open data
  • Made with Natural Earth. Free vector and raster map data @ naturalearthdata.com. Public domain
  • © OpenStreetMap contributors (ODbL), via NASA GIBS (coastlines, boundaries, roads and place names). Colours redrawn from the published colour map; values averaged into hexagonal cells where shown (modified). ODbL
  • Blue Marble, NASA Earth Observatory; imagery via NASA GIBS. Colours redrawn from the published colour map; values averaged into hexagonal cells where shown (modified). NASA open data
  • Context on the globe and flat map: coastlines, boundaries, roads and place names from NASA GIBS reference layers (OpenStreetMap data, ODbL, © OpenStreetMap contributors); Blue Marble imagery as an optional base; 3D terrain and the elevation read-out from the ASTER GDEM elevation colour index (5 m to 200 m classes, exaggerated for legibility). Boundaries are drawn as published and imply no position on any territory.
  • Live events: NASA Earth Observatory Natural Event Tracker (EONET); events are indicative and keep their original source links.
  • Live: NASA EONET Events are indicative, not authority warnings.
  • Live: U.S. Geological Survey Events are indicative, not authority warnings.
  • Observed (EO): NASA JPL OPERA DIST-ALERT (contains modified Copernicus Sentinel data 2026). We acknowledge the use of imagery provided by services from NASA’s Global Imagery Browse Services (GIBS), part of NASA’s Earth Science Data and Information System (ESDIS).
  • NASA GIBS: We acknowledge the use of imagery provided by services from NASA’s Global Imagery Browse Services (GIBS), part of NASA’s Earth Science Data and Information System (ESDIS).
  • River discharge forecast, 30 days with range (GloFAS via Open-Meteo): Contains modified Copernicus Emergency Management Service information 2026; not a flood warning.
  • Weather data by Open-Meteo.com (https://open-meteo.com/), licensed under CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/).
  • Optional layers (11 sources in the layer list: live, forecast, observed and context) print their provider credit on the map and here when switched on; forecasts are model output and derived indices are estimates.

Layers and dates

  • Population density, 2020: Population: CIESIN, Columbia University, Gridded Population of the World v4.11 (2018), NASA SEDAC, CC BY 4.0 · static
  • Flood water, 3-day composite: VIIRS Global Flood Product, NASA LANCE · 14 Oct 2026
  • Night-time lights, daily: VIIRS Black Marble (VNP46A2), NASA LAADS DAAC · 12 Oct 2026
  • True colour: VIIRS NOAA-20 corrected reflectance, NASA LANCE · 13 Oct 2026
  • Active fires and thermal anomalies: VIIRS NOAA-20 375 m (FIRMS), NASA LANCE FIRMS · 13 Oct 2026
  • Land surface temperature, day, 8-day composite: VIIRS NOAA-20 Level 3, 8-day, NASA LANCE · 14 Sep 2026

04Across the domains

The cascades this topic studies run through the five domains.

Cascade analyses are designed for the Scenario and Stress-Test series. Interdependency classes follow Rinaldi and colleagues (2001), and propagation models would carry model cards under NS-12 of the proposed Nexus Standards.

  • Documented cascades with a source for every step.
  • Permitted dependency data for a city or sector.
05Twin and cascade simulator

Model cascades and interdependence as a system. Run the cascade.

Assembled from the Nexus Standards area profile Global and systemic risk: the hazards it names, the systems and sectors that carry the loss, the controls that dampen it and the data that observe it. Choose the components, pick an initiating hazard and step through the cascade. The Map view places the run on an example geography with open data. Every coupling weight is a stated assumption you can change. A teaching model, not a forecast, an assessment or a certification. To model a place of your own choosing, open the full System Builder.

Hazards

  • Dam failure
  • Financial contagion
  • River flood (set off downstream)
  • Flash flood (set off downstream)
  • Mass displacement (set off downstream)
  • Widespread power outage (set off downstream)
  • Water supply shortfall (set off downstream)
  • Sovereign debt crisis (set off downstream)
  • Currency crisis (set off downstream)

Controls

  • NS-0 Constitution and principles
  • NS-3 Risk record UNIs (grammar, legacy crosswalk, allocation authority)
  • NS-9 Contextual UNIs (deployments, instances, programme instances)
  • NS-10 Policies and clauses (machine-readable obligations: definition, binding, evaluation and enforcement)
  • NS-11 Verification and monitoring (evidence, attestations, zero-trust conformance observation)
  • NS-14 Conformance and crosswalk to external standards
  • NRS-H120 Hazard family: Structural fragility of interconnected systems (NHS-1 sys.fragility)
  • NRS-C6 Systemic and cascading risk
  • NRS-H61 Hazard family: Cascading failure (NHS-1 sys.cascade)
  • NRS-H62 Hazard family: Compound and multi-hazard events (NHS-1 sys.compound)
  • NRS-H94 Hazard family: Systemic cyber events (NHS-1 cyber.systemic-cyber)
  • NRS-H60 Hazard family: Supply-chain and flow disruption (NHS-1 sys.supply-chain)

Observation

  • INFORM Risk Index (listed for reference)
  • World Bank Open Data and World Development Indicators API (listed for reference)
  • IMF data services (WEO, IFS, FSI via SDMX) (listed for reference)
  • Direct economic loss attributed to disasters in relation to global GDP
  • Macroeconomic Dashboard

Example geography

  • Bangladesh: 134 hexagonal cells
  • Night lights tonight, outages (VIIRS Day/Night Band), NASA GIBS
  • Surface water through cloud, 30 m (OPERA DSWx-S1 radar), NASA GIBS
  • Rain rate, last half hour (IMERG), NASA GIBS
  • Surface soil moisture (SMAP), NASA GIBS
06Indicators

What is measured, and how well.

Each indicator carries its unit, its cadence, the kind of source behind it and the evidence label a value would carry. No values are shown: a programme supplies them under its own authority.

IndicatorUnitCadenceSource typeLabel
Mapped critical dependenciescount of supplier and service dependencies recordedannualDependency inventoriesDECLARED
Single points of failurecount of dependencies without a substituteannualDependency analysisESTIMATED
Buffer endurancehours or days of operation after loss of an inputper assetContinuity plans and asset recordsDECLARED
Supplier concentrationHerfindahl-Hirschman index of spend or volumeannualProcurement recordsOBSERVED
Cascade depth in scenariosnumber of systems affected downstreamper scenarioInterdependency modelsMODELLED
Restoration sequence timehours to restore dependent servicesper eventIncident and restoration recordsOBSERVED
07Methods and evidence

How cascades and interdependence is modelled, measured and tested.

The model, its assumptions, its data and its uncertainty, in the form a scientist or engineer would check. Structures follow published methods. The values drawn are illustrative, not findings.

System model

The couplings between the systems in cascades and interdependence: signs of influence, a reinforcing and a balancing loop, and cross-links where stress jumps.

++−+Risk managementMethodsCommunitiesEconomyR reinforcingB balancing
Causal loop diagram from the page’s systems; signs show the direction of influence. Illustrative structure for a system dynamics or network model, not estimated couplings.
FAIR guiding principles · GO FAIR and FORCE11W3C PROV · World Wide Web ConsortiumGuidance on consistent treatment of uncertainties · IPCCCEOS Analysis Ready Data · Committee on Earth Observation Satellites
08Sources

Where the evidence comes from.

Named public datasets and institutional records, each with its licence class. Sources by agreement are used only under their terms and never republished.

SourceWhat it givesLicence class
Incident reports from infrastructure operators and regulatorsDocumented failures with their causes and downstream effectsPublic records, terms per publisher
UNDRR Global Assessment ReportAnalysis of systemic and cascading risk across sectors and scalesPublic, UN terms of use
OECD national supply and use tables and Inter-Country Input-Output tablesEconomic dependencies between industries and countriesOpen, OECD terms of use
Grid and network operator outage databasesRecords of outages, duration and customers affectedPublic summaries; full data by agreement (to check)
Academic interdependency case librariesReconstructed cascades from past events, with methods describedLicence per publication
09Decisions

Who decides, and what the evidence serves.

Systemic Risk Management prepares evidence. The decisions below are taken by the authorities named, under their own rules, and never by the platform.

Who decidesThe questionEvidence this page serves
Infrastructure operatorsWhich upstream dependencies need backup, diversification or contractual protectionDependency maps; single points of failure; buffer endurance
Emergency management agenciesWhich services must be restored first after a widespread outageRestoration sequences; cascade scenarios with timing
Sector regulators and competition authoritiesWhether concentration in a shared provider needs oversightConcentration analysis with its data gaps stated
Treasury and planning ministriesWhere public investment in redundancy reduces the most shared exposureCascade depth in scenarios; restoration evidence

Outputs this topic produces

  • Dependency maps across energy, water, communications, transport and finance
  • Cascade scenarios with buffers and timing stated
  • Concentration analysis of shared suppliers, hubs and providers
  • Restoration sequencing notes for interdependent services
10Core questions

What cascade analysts ask.

  • Which components, if they failed, would cause the widest loss across the system?
  • Which apparently independent risks are in fact correlated through a common cause?
  • Where are the feedback loops that could amplify a shock rather than damp it?
  • How close is the system to a threshold beyond which recovery becomes much harder?
11Mechanisms

How cascades work.

In a network, each node carries load or provides service to others. When a node fails, its load shifts to neighbours. If they are close to capacity, they fail too, and the cascade continues until the remaining system can carry the load or the network fragments. Highly connected hubs make networks robust to random failures but vulnerable to targeted or hub failures.

Common-cause failure defeats redundancy. Two backup systems that share a power supply, a software version, a supplier or a location may fail together. Correlation often rises under stress: assets, markets and infrastructures that move independently in normal times move together in a crisis. Feedback loops, such as forced selling or panic buying, can turn a moderate shock into a severe one.

12Methods and limits

How cascades are analysed.

  1. 01

    Network models

    Network science and contagion models simulate how failures spread across a mapped network. They depend on knowing the network, which is often partial.

  2. 02

    Fault and causal networks

    Fault trees and Bayesian networks represent how combinations of failures lead to outcomes. They capture common causes when those causes are known.

  3. 03

    Dependence modelling

    Statistical models of joint extremes, from probability and statistics, capture tail dependence. Data on joint extremes is scarce by nature.

  4. 04

    Agent-based models

    Simulate behaviour of many interacting actors. They are useful for insight but hard to validate.

13Methods

How it is studied, and what the methods cannot say.

16Questions

Questions and answers.

What is a cascading failure?
A failure in one part of a system, or in one system, that causes failures in other parts or other systems that depend on it, sometimes repeatedly and across sectors.
What is the difference between systemic and cascading risk?
Cascading risk describes the chain of effects from one failure. Systemic risk is broader: it arises from the structure of a whole system, including its dependencies, concentration and feedbacks, and can threaten the functioning of the system itself.
Can cascades be predicted?
Their paths can be explored with dependency maps and scenarios, which shows where they are likely to travel. The timing and size of a specific cascade remain uncertain.
Is redundancy enough to prevent cascades?
Not if redundant components share a cause of failure. Diversity and separation matter as much as duplication.
Why do correlations rise in a crisis?
Because common drivers, such as liquidity needs, shared hazards or panic, dominate under stress and push many components in the same direction.
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