Future Global Shocks

Improving Risk Governance

European Parliament | 2022

This report addresses risks and building capabilities for Europe in a contested world. The coronavirus crisis has demonstrated that the European Union faces various risks, that those disparate risks are interlinked, and that the response to such challenges to the Union is stronger with the Union and its Member States acting together.

Russia’s war on Ukraine, launched while this study was being drafted, shows us more than just the added value of the Union’s concerted action and the ability of EU institutions and Member States to find new and effective solutions to deal with major shocks.

Risks and policy responses linked

This paper, the first in an annual series, seeks to assess the risks to, and capabilities and resilience of, the EU system. Building on a review of global risks, it considers specific risks with the potential to harm Europe and its people in detail.

It then sets out options for policy responses to ensure Europe can address the dangers of such risks and minimise the potential damage. Among the options set out are those previously included in European Parliament resolutions, in positions from other EU institutions, and in policy papers from think tanks and stakeholders.

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COSO

Committee of Sponsoring Organizations (COSO) | 1985

This Internal Control—Integrated Framework was developed by the Committee of Sponsoring Organizations (COSO) of the Treadway Commission.

The American Accounting Organization (AAA), American Institute of Certified Public Accountants (AICPA), Financial Executives International (FEI), Institute of Internal Auditors (IIA), and Institute of Management Accountants (IMA) Organizations seeking to scale find that this framework offered an approach to enterprise risk management (ERM) sensitive to variability from one organization to the next.

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(Global) Resilient Cities Network

Global Resilient Cities Network | 2019

The 100 Resilient Cities network continues its goals under the provisional name Global Resilient Cities Network (GRCN). The year 2019 has been a year of significant change.

At the Urban Resilience Summit in Rotterdam, 100 cities worldwide came together under the name 100 Resilient Cities (100RC). Rotterdam, as one of the 100 Resilient Cities, acted as the host city because of its exemplary role as a resilient city.

From medio 2019, the 100RC network will continue under the provisional name (Global) Resilient Cities Network (GRCN). GRCN is leading the global conversation on building resilient cities, or in other words, making cities resilient and future-proof, to accelerate climate action and social and economic resilience, among other things.

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Paris Agreement

United Nations | December 2015

The Paris Agreement is a legally binding international treaty on climate change. It was adopted by 196 Parties at COP 21 in Paris on December 12, 2015, and entered into force on 4 November 2016.

Its goal is to limit global warming to below 2, preferably to 1.5 degrees Celsius, compared to pre-industrial levels.

To achieve this long-term temperature goal, countries aim to peak global greenhouse gas emissions as soon as possible and achieve a climate-neutral world by mid-century.

The Paris Agreement is a landmark in the multilateral climate change process because, for the first time, a binding agreement brings all nations together to undertake ambitious efforts to combat climate change and adapt to its effects.

Download: Paris Agreement 2015

Agenda 21

United Nations | 1992

Agenda 21 is a voluntary action plan developed by the United Nations and national governments at the “Earth Summit” in Rio de Janeiro, Brazil 1992. At the Summit, governmental leaders worldwide agreed on the need to become more sustainable—to meet today’s needs without sacrificing our future.

Agenda 21 presents a vision for how all levels of government—especially in the developing world—can take voluntary action to combat poverty and pollution, conserve natural resources and develop in a sustainable manner. One-hundred-seventy-eight nations, including the United States under the Bush Administration, adopted the agenda.

Preamble

"1.1 Humanity stands at a defining moment in history. We are confronted with a perpetuation of disparities between and within nations, a worsening of poverty, hunger, ill health and illiteracy, and the continuing deterioration of the ecosystems on which we depend for our well-being. However, integration of environment and development concerns and greater attention to them will lead to the fulfilment of basic needs, improved living standards for all, better protected and managed ecosystems and a safer, more prosperous future. No nation can achieve this on its own; but together we can - in a global partnership for sustainable development."

Agenda 21 is not a treaty or legally binding document and does not infringe upon the sovereignty of any nation, state, or local government. Agenda 21 does not advocate for abolishing private property or have any bearing on U.S. local and state land-use decisions. In other words, it isn’t being forced on anybody, anywhere, by any organisation.

A chapter within Agenda 21 introduces the concept of a “Local Agenda 21” and offers a vision for how local governments can develop their own sustainability initiatives.

28.1. Because so many of the problems and solutions being addressed by Agenda 21 have their roots in local activities, the participation and cooperation of local authorities will be a determining factor in fulfilling its objectives. Local authorities construct, operate and maintain economic, social and environmental infrastructure, oversee planning processes, establish local environmental policies and regulations, and assist in implementing national and subnational environmental policies. As the level of governance closest to the people, they play a vital role in educating, mobilizing and responding to the public to promote sustainable development.

A key theme with Agenda 21 was local self-determination and community engagement: “Each local authority should enter into a dialogue with its citizens, local organisations and private enterprises. Through consultation and consensus-building, local authorities would learn from citizens and local, civic, community, business and industrial organisations and acquire the information needed for formulating the best strategies. The process of consultation would increase household awareness of sustainable development issues.”

Download Framework.

Millennium Development Goals

United Nations | 2000

One way to improve global governance of society and nature’s public domain is to work on governance codes. Another is to pursue goals on global public policy issues. The United Nations set the Millennium Development Goals (MDGs) in 2000.

In September 2000, building upon a decade of major United Nations conferences and summits, world leaders came together at United Nations Headquarters in New York to adopt the United Nations Millennium Declaration.

They committed their nations to a new global partnership to reduce extreme poverty and set out a series of time-bound targets – with a deadline of 2015. They were the first attempt to formulate global targets and are the predecessors of the Sustainable Development Goals SDGs. 

Download Millennium Declaration.

ISO 31000

The International Organization for Standardization | November 2009

The International Organization for Standardization (ISO) in Genève started in 2005 the development of a guidance standard on risk management. An ISO working group was established to develop a Committee Draft called ISO CD31000. The standard “gives generic guidelines for the principles and the adequate implementation of risk management. It is not intended to be used for the purposes of certification.”

ISO 31000 seeks to provide a universally recognised paradigm for practitioners and companies employing risk management processes, replacing the myriad of existing standards, methodologies, and paradigms that differ between industries, subject matters, and regions. For this purpose, the recommendations provided in ISO 31000 can be customized to any organisation and its context.

In some respects, ISO 31000 is similar to ISO 9000 and other broad-based international standards. Though it is not certifiable, it is a concise and comprehensive statement which can, in a practical sense, contribute to the awareness and implementation of risk management.