Market Volatility Spillover, Network Diffusion, and Financial Systemic Risk Management: Financial Modeling and Empirical Study

With the accelerated pace of financial globalization and gradual increase in linkages among markets, correctly identifying describing risk spillover network diffusion system is extremely important for prevention management systemic risk. Based on this, this paper takes equity markets 17 countries around world from 2007 to 2022 as research object, measures volatility effect global using R-Vine Copula DY index, constructs discovers pattern market risks, provides relevant suggestions management. It found that (1) there are certain aggregation characteristics spillover; (2) developed European such Netherlands, France, UK, Germany at center have a strong influence; (3) Asian China, Japan, India periphery network; (4) shocks crisis events enhance effect. above findings, effective reduction need be carried out two ways. First, by focusing key network, Germany. The second approach mitigate uneven development reduce high correlation them.