LEARN · FRAGILITY & SYSTEMIC RISK

Fragility & Systemic Risk

Market fragility measures the structural vulnerability of the financial system to adverse shocks — how likely a small perturbation is to trigger a disproportionately large dislocation. Unlike volatility, fragility is forward-looking. Markets are most dangerous when volatility is low but fragility is high — a state AhaSignals calls "Quiet Fragility."