"NDSM RISK" PRIMER OF THE CANADIAN FINANCIAL INSTITUTIONS AND INSURANCE SECTOR

Abstract

To measure the non-diversifiable systemic market risk (NDSM Risk) of the Canadian financial sector is the primary and major focus of conducting this research. In this study, the Non-diversifiable Systemic Risk or NDSM Risk methodology is undertaken to measure systemic risk of the Canadian banks and Insurance companies. The study shows the numerical value of computational table to demonstrate the NDSM Risk for the Canadian Banks and Canadian insurance industry measured in currency value of Million CAD (Worldwide Crises). Here the NDSM Risk methodology is undertaken to carry out this investigation. Lack of resource of primary data is the main creating hindering effect that is faced in this study. This article portrays the increase in unavoidable risk factors leading to consequences of aggregate sovereign risk also accelerating these problems within the regions and countries mentioned in this research. Due to the COVID-19 outbreak, the developed nations as well as emerging economies are facing vulnerability in the area of financial, governmental, environmental in order to be Financially resilient. This is high time of detecting these problems and taking precautionary measures by the policy-makers and government in the economic sector by adopting implementable methodologies. The current study reflects the situation with regard to forthcoming researchers who intends to study as well as interested in this particular area.