# Professor Robert Engle's research on systemic risk is referenced

1 Faculty News March 17, 2017 ![](/sites/default/files/styles/246w/public/assets/images/con_041381.jpg?itok=piqk5pv9)>

Excerpt from [Business Day](https://www.businesslive.co.za/bd/opinion/2017-03-17-would-a-systemic-risk-tax-protect-sa-from-a-potential-banking-failure/) -- "A frequently used metric is the SRISK, a measure of systemic risk used by Nobel laureate [Robert Engle](http://www.stern.nyu.edu/faculty/bio/robert-engle) and his associates from the New York University’s Stern School of Business. At the firm level, SRISK is the expected capital shortfall — the amount it would cost to bail out the institution to maintain stability in the markets — that is associated with the collapse of the institution under stressed market conditions. This measure is a function of the size of the firm; the extent to which debt is used to finance activity. Equity losses would be expected to be incurred in the long term when the system is under distress."

[Read more](https://www.businesslive.co.za/bd/opinion/2017-03-17-would-a-systemic-risk-tax-protect-sa-from-a-potential-banking-failure/)