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Understanding Compound, Interconnected, Interacting, and Cascading Risks: A Holistic Framework

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  • Gianluca Pescaroli
  • David Alexander

Abstract

In recent years, there has been a gradual increase in research literature on the challenges of interconnected, compound, interacting, and cascading risks. These concepts are becoming ever more central to the resilience debate. They aggregate elements of climate change adaptation, critical infrastructure protection, and societal resilience in the face of complex, high‐impact events. However, despite the potential of these concepts to link together diverse disciplines, scholars and practitioners need to avoid treating them in a superficial or ambiguous manner. Overlapping uses and definitions could generate confusion and lead to the duplication of research effort. This article gives an overview of the state of the art regarding compound, interconnected, interacting, and cascading risks. It is intended to help build a coherent basis for the implementation of the Sendai Framework for Disaster Risk Reduction (SFDRR). The main objective is to propose a holistic framework that highlights the complementarities of the four kinds of complex risk in a manner that is designed to support the work of researchers and policymakers. This article suggests how compound, interconnected, interacting, and cascading risks could be used, with little or no redundancy, as inputs to new analyses and decisional tools designed to support the implementation of the SFDRR. The findings can be used to improve policy recommendations and support tools for emergency and crisis management, such as scenario building and impact trees, thus contributing to the achievement of a system‐wide approach to resilience.

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  • Gianluca Pescaroli & David Alexander, 2018. "Understanding Compound, Interconnected, Interacting, and Cascading Risks: A Holistic Framework," Risk Analysis, John Wiley & Sons, vol. 38(11), pages 2245-2257, November.
    • Handle: RePEc:wly:riskan:v:38:y:2018:i:11:p:2245-2257
    DOI: 10.1111/risa.13128
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    4. Gong, Xu & Song, Yijie & Fu, Chengbo & Li, Huijing, 2023. "Climate risk and stock performance of fossil fuel companies: An international analysis," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 89(C).
    5. Emanuele Bevacqua & Laura Suarez-Gutierrez & Aglaé Jézéquel & Flavio Lehner & Mathieu Vrac & Pascal Yiou & Jakob Zscheischler, 2023. "Advancing research on compound weather and climate events via large ensemble model simulations," Nature Communications, Nature, vol. 14(1), pages 1-16, December.
    6. Ivan Villaverde Canosa & James Ford & Jouni Paavola & Daria Burnasheva, 2024. "Community Risk and Resilience to Wildfires: Rethinking the Complex Human–Climate–Fire Relationship in High-Latitude Regions," Sustainability, MDPI, vol. 16(3), pages 1-22, January.
    7. Soumyatanu Mukherjee & Sidhartha S. Padhi, 2022. "Sourcing decision under interconnected risks: an application of mean–variance preferences approach," Annals of Operations Research, Springer, vol. 313(2), pages 1243-1268, June.
    8. Kyunghun Kim & Young Hye Bae & Hung Soo Kim, 2024. "Estimating the natural disaster ınter-event time defition (NIETD) to define compound natural disasters in South Korea," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 120(9), pages 8761-8778, July.
    9. Thomas J. Huggins & Lili Yang & Didier Sornette, 2021. "Introduction to the Special Issue on Cascading Disaster Modelling and Prevention," IJERPH, MDPI, vol. 18(9), pages 1-4, April.
    10. Kuttler, Emma & Ghorbani-Renani, Nafiseh & Barker, Kash & González, Andrés D. & Johansson, Jonas, 2024. "Protection-interdiction-restoration for resilient multi-commodity networks," Reliability Engineering and System Safety, Elsevier, vol. 242(C).
    11. Insang Yu & Huicheul Jung, 2022. "Flood Risk Assessment to Enable Improved Decision-Making for Climate Change Adaptation Strategies by Central and Local Governments," Sustainability, MDPI, vol. 14(21), pages 1-24, November.
    12. Venturini, Alessio, 2022. "Climate change, risk factors and stock returns: A review of the literature," International Review of Financial Analysis, Elsevier, vol. 79(C).
    13. Heidenstrøm, Nina & Throne-Holst, Harald, 2020. "“Someone will take care of it”. Households' understanding of their responsibility to prepare for and cope with electricity and ICT infrastructure breakdowns," Energy Policy, Elsevier, vol. 144(C).
    14. Veruska Muccione & Thomas Lontzek & Christian Huggel & Philipp Ott & Nadine Salzmann, 2023. "An application of dynamic programming to local adaptation decision-making," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 119(1), pages 523-544, October.
    15. Christian Huggel & Laurens M. Bouwer & Sirkku Juhola & Reinhard Mechler & Veruska Muccione & Ben Orlove & Ivo Wallimann-Helmer, 2022. "The existential risk space of climate change," Climatic Change, Springer, vol. 174(1), pages 1-20, September.

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