Understanding, Assessing and Managing Systemic Risk

In an increasingly interconnected and globalized world, COVID-19 and the ongoing war in Ukraine have strongly emphasized the systemic nature of risks. The effects of climate change, emerging infectious diseases and armed conflicts are increasingly felt across economic sectors, systems, borders and scales, affecting societies as a whole. Compounding hazards and shocks are exposing the vulnerabilities of interdependent systems that impact our well-being. Complex risks do not operate within system boundaries, with interconnected vulnerabilities, risks and impacts underscoring the need to move from hazard-by-hazard and sectoral approaches to comprehensive all-hazard and multi-risk approaches of understanding, assessing and managing risks. This shift is also reflected in the Sendai Framework for Disaster Risk Reduction, which promotes a holistic understanding of the dynamic nature of systemic risks. Yet, understanding, assessing and managing complex, interconnected risks remains a challenge for countries across the globe.
This technical session aims to address these challenges by offering a space for sharing experiences, discussing promising approaches and presenting recommendations moving forward. In doing so, it will provide a platform for collaborative learning, dialogue and exchange on how to better understand and assess systemic risks. More specifically, the proposed session aims to:
Present evidence on the systemic nature of risks from recent catastrophic events
Discuss the policy relevance of understanding and assessing the systemic nature of risks
Share experiences, opportunities and best practices for the integrated assessment of complex, interconnected risks
Show innovative approaches to quantitatively estimate systemic risk and the propagation of losses through the economy of a country
We aim for a highly interactive session that encourages participants to share experiences, lessons and recommendations. It will comprise of an opening (setting the scene), Mentimeter surveys to engage the audience, short round of statements by panelists, roundtable discussion along guiding questions, and a moderated Q&A (incl. use of participatory online tools). Further, we intend to show a short 120 seconds video that explains the notion of systemic risk and the challenges it entails.