Systemic risks. Concepts and challenges for risk governance

Modern societies are confronted with ‘systemic risks’ which challenge conventional risk analysis and management. The phrase ‘systemic risks’ denotes risk phenomena which are exceedingly complex and interdependent. Systemic risks originate in tightly coupled systems. They are characterised by cascading effects, tipping points and non-linear developments. Furthermore, compared to their potential impacts, they often lack proportional public awareness and adequate policies. Conventional risk management struggles with these challenges. Yet many threats to modern society, such as financial crises and the impacts of anthropogenic climate change, match these attributes. This article investigates the concept of systemic risks and raises questions for governance. The concept of inclusive risk governance serves as a guiding principle. In particular, the article draws on the Risk Governance Framework by the International Risk Governance Council to address the challenges of systemic risks.