Headline: Systemic Risks

The growing complexity of our world makes it increasingly difficult to forecast risks with any reliability. Systemic risks differ from conventional risks in a number of respects: they are both highly complex and intertwined with other risks, and their impacts are spread across diverse areas of public and economic life. Most notably, their impacts transcend both systemic boundaries (between scientific, political, and societal systems, for example) and national boundaries. Our research seeks to determine how systemic risks emerge and to identify early warning signs for the existence of both systemic risks and their trigger points.

Embracing innovative approaches to the study of systemic risks, the IASS research team analyses the complex interdependencies between science and society through the lenses of inter- and transdisciplinary research perspectives. These interdependencies will be examined across a variety of fields, including business, technology, the environment, and society. Within this context, researchers will seek to identify and characterise common patterns and structures across different systemic risks with a view to developing an early warning system for systemic risks over the longer term. Further research will seek to identify policy instruments and governance methods that ease the management of systemic risks.

Dossiers

Systemic Risks Dossier

Modern societies are vulnerable to “systemic risks” such as pandemics, financial crises, or climate change. Due to their complex and interconnected nature, systemic risks pose a particular challenge to conventional approaches to risk analysis and management. The research group on systemic risks at RIFS analyses risks and opportunities around transformation processes for sustainable development and, in a second step, develops policy recommendations for the governance of systemic risks.

Book section

Tackling Climate Change and Uncertainty in Risk Governance

Experts from politics, business, science and civil society can and should be involved in efforts to identify, analyse, and reduce risks relating to climate change. Prof. Ortwin Renn outlines the four stages of the risk governance framework developed by the International Risk Council’s (IRGC): from a pre-assessment and appraisal of risks and concerns, through to the evaluation and the implementation of risk governance.

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SAPEA

Europe needs more strategic crisis management

The European Union faces a growing number of complex, overlapping, transboundary crises, such as the COVID-19 pandemic, climate change, and Russia's invasion of Ukraine. It must better prepare for and respond to them, according to the scientific and ethical opinion delivered to the EU Commission at the European Parliament in Strasbourg on Nov. 22, 2022.

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Study

Social Tipping Points in the Spotlight

While the physical tipping points of the climate system have been the focus of substantial research, social tipping points, in which societies succeed or fail in adapting to climatic change, have received little coverage. An international team including researcher Pia-Johanna Schweizer from the Institute for Advanced Sustainability Studies (IASS) recently published a study that explores social tipping points in connection with climate adaptation and systemic risks.

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Policy Brief

Precaution and Innovation Are by No Means at Odds

The EU Horizon 2020 project “RECIPES” has published its final policy brief. A team from the Institute for Advanced Sustainability Studies (IASS) led by Pia-Johanna Schweizer was involved in the project and examined how participatory approaches can support the application of the precautionary principle. This issue is explored in depth in a chapter of the project’s report “Guidance on the application of the precautionary principle in the EU”.

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Publication

Humanity Faces Grave Challenges, but They Are Manageable

Global heating, pandemics, cyberattacks, and large-scale forced migrations are among the increasingly interconnected and mutually reinforcing challenges faced by humanity over the last decades. A team of scientists has taken a look at the triggers and consequences of overlapping crises (polycrises), investigating what processes facilitate the interaction of crisis-triggering events as well as how this interaction can be prevented, or mitigated. The team has also developed an analytical framework that helps identify complex and interrelated crises.

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Systemic Risk Briefing Note

Dealing with Complex Challenges

The systemic and uncertain risks facing the world today can have cascading impacts across systems and sectors. To better understand and respond to these risks, an integrated perspective that incorporates the inherently complex nature of climate-related hazards, vulnerability, exposure and impacts is needed. This insight is at the centre of a new briefing note co-authored by IASS research group leader Pia-Johanna Schweizer and published by the International Science Council, the United Nations Office for Disaster Risk Reduction and the Risk Knowledge Action Network.

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Study

New Index Balances Health, Economy, and Climate Risk

The coronavirus pandemic has created enormous social, economic and political challenges worldwide. The demand for immediate action often pushed climate policy ambitions into the background. Scientists from the University of Waterloo (Canada), together with Ortwin Renn from the IASS and Hans Joachim Schellnhuber of PIK have developed a new operational approach that provides guidance to decision-makers seeking to reconcile the demands of competing goals, including effective climate protection.

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Study

Solar Radiation Modification and the Sustainable Development Goals

Would humanity be helped by deploying technologies to modify solar radiation in such a way as to slow global warming, while also creating complex problems? A team of researchers with participation from the IASS has reviewed the current state of knowledge on solar radiation modification. The resulting study offers an overview of how geo-engineering interventions could affect efforts to achieve the SDGs.

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Study

The Opportunities and Risks of Digitalisation for Sustainable Development

Digitalisation can support transitions towards a more sustainable society if technologies and processes are designed in line with suitable criteria. This requires a systemic focus on the risks and benefits of digital technologies across the three dimensions of sustainable development: the environment, society, and the economy. This is the conclusion of a study prepared by a team of researchers at the Institute for Advanced Sustainability Studies (IASS) in Potsdam. Applying this precautionary approach to digitalisation requires the active involvement of developers, users, and regulators.

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Study

Insights from Complexity Science: More Trust in Self-Organization Needed

Globalization, digitalization, sustainabilization – three major waves of transformation are unfolding around the world. The social upheaval caused by these transformation processes has given rise to populist movements that endanger social harmony and threaten democratic values. What rules and institutions can promote stability in the face of such systemic risks? A new study published by the IASS offers some surprising answers.

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Special Issue

New Solutions for Addressing Systemic Risks

Systemic risks like climate change, cyber security and pandemics are characterised by high complexity, uncertainty, ambiguity, and effects beyond the system in which they originate. That’s why novel research approaches and regulatory measures are indispensable for the evaluation and management of these risks. An interdisciplinary team around IASS Scientific Director Ortwin Renn recently published a paper on this subject, which appears as the first article in a special issue of the journal “Risk Analysis” edited by Renn and IASS Research Group Leader Pia-Johanna Schweizer.

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Sustainable risk assessment

IASS Director Advises British House of Lords

The British House of Lords recently invited the Scientific Director of the Institute for Advanced Sustainability Studies (IASS) Professor Ortwin Renn to speak about national risk assessment at a public hearing of the Select Committee on Risk Assessment and Risk Planning. One of the main points Renn made to the British Parliament was that in tackling a national crisis, governments need to show that they are working in the interests of the common good.

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Green-Win-Project

How ecological Value Chains Can Help Societies Tackle the Coronavirus Crisis

The coronavirus pandemic has cast a spotlight on the vulnerability of global value chains. Sustainable value chains at the regional level could bring more stability to the post-pandemic world. A team of researchers at the Institute for Advanced Sustainability Studies (IASS) has developed a typology of climate win-win strategies that can be used to identify sustainable regional value chains.

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How is Covid-19 affecting the global economic order?

Scenarios for the Global Monetary System

Supply chains collapse, companies are facing bankruptcy, and mass unemployment ensues. Covid-19 has triggered a global financial crisis and is forcing states to develop rescue packages on a scale not seen before. In addition, the crisis has called into question the US dollar's hegemony and could redefine the global monetary system. A team of researchers from the Institute for Advanced Sustainability Studies (IASS) has developed four scenarios that show how political decisions will shape the post-Corona world.

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SAPEA Report

Scientific Expertise Vital to EU Policymaking

In its latest report, the European organisation SAPEA (Science Advice for Policy by European Academies) has spoken out in favour of scientific advice for policymaking. By accessing the best available knowledge, policymakers are better equipped to tackle complex global challenges such as climate change. The report was prepared by an international working group comprising representatives of all the science academies of the EU member states. The group was chaired by Ortwin Renn from the Institute for Advanced Sustainability Studies (IASS).

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Award

Order of Merit Awarded to IASS Director

Eighteen people were recently awarded the Order of Merit of the federal state of Baden-Württemberg by Governor Winfried Kretschmann. Professor Ortwin Renn, Scientific Director at the Institute for Advanced Sustainability Studies (IASS) was among them. Renn was honoured for his outstanding contribution to the transfer of scientific insights into politics, public administration and management and his unstinting commitment to a just and sustainable economic and social order.

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Risk Governance Concept

Advancing Disaster Risk Reduction

Populations are growing in disaster-prone areas around the world. The interaction of natural hazards with physical infrastructure in these regions can trigger devastating chain reactions, harming societies and their technical foundations. What can be done to address these challenges? A team at the Institute for Advanced Sustainability Studies (IASS) has developed a multi-level risk governance concept for natural disasters.

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Making Small and Medium-Sized Enterprises Drivers of Green Growth: Recommendations for Politics and Business

“Green growth” promises to foster sustainable development while promoting economic prosperity and advancing social justice. But how does this work in practice? The EU-funded research project “Green Growth and Win-Win Strategies for Sustainable Climate Action” (Green-Win) has studied a range of green growth strategies. Its research results include a new guide to green business models and policy recommendations to foster green growth and support small and medium-sized enterprises.

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How Cities Should Approach Complex Risk Situations

Cities are more vulnerable than rural areas to a host of risks. Natural hazards like earthquakes or social risks like vandalism and crime have a far greater impact there. Moreover, the infrastructure of our cities is increasingly networked, and while smart cities may offer more in terms of security and convenience, data protection often falls by the wayside. Since risks are frequently interconnected, we need to take an integrated approach to managing them. A concept for risk governance elaborated by IASS researchers in the International Journal of Disaster Risk Science reflects just such an approach.

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Anxious Times: New Book by IASS Director Ortwin Renn

How powerful is fear and what effect does it have on our society? These questions are at the heart of a recently published book by the environmental and technical sociologist Ortwin Renn. In “Zeit der Verunsicherung” (Anxious Times), the Scientific Director at the Institute for Advanced Sustainability Studies (IASS) probes the causes and effects, as well as the perception and handling of fears in our society.

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