Tackling the Complex Interplay of Risks
in Time and Space
Our highly interconnected and increasingly complex world, with technological advancements at unprecedented levels, brings new and potentially disrupting risks to our global society. These 21st-century risks are associated with financial-economic instability, environmental changes, and technological breakdowns, such as: asset bubbles in major economies, the failure of climate-change mitigation and adaptation, or massive cyber-attacks. The common characteristic features of these 21st-century risks are their contagious amplification over time and space, i.e., across markets, regions, and networks; and their vast levels of uncertainty, being more pervasive than ever.
Funded by an NWO VICI grant, the 21st-Century Risks Institute (21crisis.org) aims at fundamentally advancing the modeling and measurement of 21st-century risks. It will address questions such as: (i) What is the right modern risk model to use in a given situation? (ii) What is the corresponding longer-run risk measurement? (iii) and How to evaluate the risk model’s model risk?