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We formulate and analyze a multi-agent model for the evolution of individualand systemic risk in which the local agents interact with each other through acentral agent who, in turn, is influenced by the mean field of the localagents. The central agent is stabilized by a bistable potential, the onlystabilizing force in the system. The local agents derive their stability onlyfrom the central agent. In the mean field limit of a large number of localagents we show that the systemic risk decreases when the strength of theinteraction of the local agents with the central agent increases. This meansthat the probability of transition from one of the two stable quasi-equilibriato the other one decreases. We also show that the systemic risk increases whenthe strength of the interaction of the central agent with the mean field of thelocal agents increases. Following the financial interpretation of such modelsand their behavior given in our previous paper (Garnier, Papanicolaou and Yang,SIAM J. Fin. Math. 4, 2013, 151-184), we may interpret the results of thispaper in the following way. From the point of view of systemic risk, and whilekeeping the perceived risk of the local agents approximately constant, it isbetter to strengthen the interaction of the local agents with the central agentthan the other way around.

A risk analysis for a system stabilized by a central agent