7. Debt Risk Analysis Using Two-Tier Networks

COVID-19 has dealt a major blow to the global economy. It would help the efforts to cope with this strain by having studies of how risk affects operations. This chapter deals with risk in the financial arena, which has been heavily hit by COVID-19. But the analysis can aid in other arenas as well, to include health-care planning and management. This study found that expansion of regional guarantee circle networks need to be controlled, as external guarantees are important to control risk contagion. Identification of key nodes in risk-contagion networks need to consider exposure and external relevance. The government should concentrate on group investment and financing platforms. And supervision of disorderly external guarantees of small- and medium-sized issuers is needed.