How systems undervalue key assets and opportunities for learning

Risk assessment has traditionally favoured quantitative data analysis based on short-term and economics-based approaches. However, in the context of today’s increasingly complex systemic risk, there is often a gap between the information available and accessible and the knowledge that needs to be used. This chapter looks at this challenge from three key angles. First, it argues there is a need to get better at collecting “traditional” data, particularly on vulnerability, exposure and disaster loss and damage. Second, it is necessary to acknowledge that systems often measure the wrong things, and take a risky short-term, myopic approach. Third, it highlights that the very concept of cause-and-effect risk assessment needs to be reconsidered, and that systemic risk assessment has much to learn from emerging good practices in management of so-called “wicked” problems that require flexible, curious and participatory management. Then, it concludes by presenting the evolutions needed to overcome shortcomings to better assess and manage systemic risk.

Sustainable Development Goals:

Sustainable Cities and Communities

Climate Action

Life on Land