Klaus Lucas (Institute of Technical Thermodynamics), Ortwin Renn (Institute of Advanced Sustainability Studies) and Carlo Jaeger (GCF) give a review of how insights form complexity science can be applied to the domain of systemic risks. They have identified four major properties of systemic risks: they are (1) transboundary in nature, (2) highly interconnected and intertwined leading to complex causal structures and dynamic evolutions, (3) non-linear in the cause-effect relationships showing often unknown tipping points or tipping areas and (4) stochastic in their effect structure.
The online article is published in Advanced Theory and Simulations and can be accessed on Wiley Online Library: https://onlinelibrary.wiley.com/doi/full/10.1002/adts.201800051
Citation: Lucas, K., Renn, O., Jaeger, C. (2018 online): Systemic Risks: Theory and Mathematical Modeling. – Advanced Theory and Simulations, 1800051.DOI: http://doi.org/10.1002/adts.201800051.