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Systemic Risks from Different Perspectives.

Ortwin Renn1, Manfred Laubichler2, Klaus Lucas3

  • 1Institute for Advanced Sustainability Studies (IASS), Potsdam, Germany.

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Summary
This summary is machine-generated.

Systemic risks, complex and pervasive, challenge traditional management. Effective governance requires integrating complexity science models with empirical data and social insights for better assessment and cooperation.

Keywords:
Interdisciplinary integrationproperties of systemic risksrisk governancesystemic risk

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Area of Science:

  • Risk Management
  • Complexity Science
  • Interdisciplinary Studies

Background:

  • Systemic risks exhibit high complexity, uncertainty, ambiguity, and transgressive effects.
  • Established risk management frameworks struggle with these characteristics, posing challenges for policymaking.
  • Negative impacts of systemic risks are pervasive, extending beyond primary areas of harm.

Purpose of the Study:

  • To address challenges posed by systemic risks from diverse disciplinary and sectorial perspectives.
  • To synthesize contributions for an interdisciplinary understanding of systemic risks and effective governance.
  • To propose an integrated approach for understanding and governing systemic risks.

Main Methods:

  • Integrating novel modeling tools from complexity sciences.
  • Utilizing empirical data from observations, experiments, or simulations.
  • Incorporating evidence-based insights from quantitative and qualitative social/cultural investigations.

Main Results:

  • Systemic risks require assessment using multiple indicators and dynamic gradients, not single estimations.
  • Scenarios for systemic risks can be aggregated from diverse but coherent data.
  • Effective governance necessitates interdisciplinary and cross-sectoral cooperation.

Conclusions:

  • Understanding and governing systemic risks demands an integrated approach combining complexity science, empirical data, and social insights.
  • Governance requires close monitoring and engagement between scientists, regulators, and stakeholders for social acceptability and effectiveness.