Search

Copyright of Environmental & Social Management Journal / Revista de Gestão Social e Ambiental is the property of Environmental & Social Management Journal and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The paper quantifies the impact of the outbreak of the Russo-Ukrainian war on sovereign bond yields for 58 countries. Our findings based on event study methodology and multivariate cross-sectional regression analysis highlight the salient role of trade channel in shaping the markets' reaction to the hostilities. The uptick in yields was higher in countries with a greater share of agricultural raw materials imports from Ukraine. No other persistent cross-geography differences in market reactions were found. The strength of the reaction was contingent on the individual countries' macroeconomic conditions. The post-event cumulative abnormal returns exhibited a positive associative link with the baseline inflation in the studied countries pointing to the inflationary pressure portended by the outbreak of war. No statistically significant links between the ex ante situation on the labor market and the subsequent bond market reaction were observed. At the outset of hostilities, the dynamics of yields were driven by the perceived likelihood of escalation, while at later stages, the trade channel appears to have shaped the market response. The paper provides insights into the factors shaping the spillover effects of the war on fixed-income markets and quantifies the speed of market adjustment in response to an external shock. [ABSTRACT FROM AUTHOR]

The study examines the main components of the organizational framework for macro-prudential management in the Member States of the European Union. The organizational design of macro-prudential management is a competence of the Member States, which can themselves be grouped into different models. First, the study provides an overview of the international and EU standards and recommendations on the legal status of macro-prudential bodies in the Member States. Then, it lists those basic features of the legal status of macro-prudential bodies which are relevant with a view to the present inquiry before finally turning to address those very features. The study concludes that there is a tendency for the EU macro-prudential body to standardize the basic elements of the legal status of the Member State macro-prudential bodies. However, the process of standardization, in terms of the content of the institutional framework, is still at an early stage and a variety of legal solutions may be identified for each of the substantive aspects. As such, we claim that the institutional framework of macro-prudential policy is best described by a coordinated standardization of the substantive pillars with different formal features and with different legal solutions.

Abstract Background Russia’s military aggression against Ukraine set in motion a large number of refugees. Considerable amount of them came and stayed in Czechia. Refugees represent special vulnerable individuals often affected by war physically and psychologically. Due to the national regulations not allowing most of Ukrainian men aged 18–60 to leave the country, nowadays Ukrainian forced migration is relatively young and strongly gendered. Evidence suggests the higher probability for searching the safe refuge abroad among Ukrainian women with small children as well as those with relatively higher economic and cultural capital. The aim of this study is to identify the structural features of systemic risks associated with war migration by examining determinants of self-rated health among forcibly displaced highly educated Ukrainian women of productive age residing in Czechia. Methods Data from one wave of the panel survey among Ukrainian refugees in Czechia conducted in September 2022 was used. Determinants of self-rated health including self-reported diseases and healthcare factors, lifestyle, human and social capital, economic factors, and migration characteristics were analysed using binary logistic regression. Results About 45% highly educated Ukrainian women refugees in Czechia assessed their health as poor. The poor self-rated health was mostly associated with the number of diseases and depressive symptoms, and by social capital and economic factors. Having four and more diseases (OR = 13.26; 95%-CI: 5.61–31.35), showing some severe depressive symptoms (OR = 7.20; 95%-CI: 3.95–13.13), experiencing difficulties to seek help from others (OR = 2.25; 95%-CI: 1.20–4.23), living alone in a household (OR = 2.67; 95%-CI: 1.37–5.27), having severe material deprivation (OR = 2.70; 95%-CI: 1.35–5.41) and coming originally from the eastern part of Ukraine (OR = 2.96; 95%-CI: 1.34–6.55) increased the chance of these refugees to assess their health as poor. Conclusion Social and economic determinants such as lack of social contacts for seeking help and material deprivation were found to be crucial for self-rated health and should be tackled via migration policies. Further, qualitative research is needed to better understand the mechanisms behind the factors affecting subjectively assessed health.

Background: Russia's military aggression against Ukraine set in motion a large number of refugees. Considerable amount of them came and stayed in Czechia. Refugees represent special vulnerable individuals often affected by war physically and psychologically. Due to the national regulations not allowing most of Ukrainian men aged 18–60 to leave the country, nowadays Ukrainian forced migration is relatively young and strongly gendered. Evidence suggests the higher probability for searching the safe refuge abroad among Ukrainian women with small children as well as those with relatively higher economic and cultural capital. The aim of this study is to identify the structural features of systemic risks associated with war migration by examining determinants of self-rated health among forcibly displaced highly educated Ukrainian women of productive age residing in Czechia. Methods: Data from one wave of the panel survey among Ukrainian refugees in Czechia conducted in September 2022 was used. Determinants of self-rated health including self-reported diseases and healthcare factors, lifestyle, human and social capital, economic factors, and migration characteristics were analysed using binary logistic regression. Results: About 45% highly educated Ukrainian women refugees in Czechia assessed their health as poor. The poor self-rated health was mostly associated with the number of diseases and depressive symptoms, and by social capital and economic factors. Having four and more diseases (OR = 13.26; 95%-CI: 5.61–31.35), showing some severe depressive symptoms (OR = 7.20; 95%-CI: 3.95–13.13), experiencing difficulties to seek help from others (OR = 2.25; 95%-CI: 1.20–4.23), living alone in a household (OR = 2.67; 95%-CI: 1.37–5.27), having severe material deprivation (OR = 2.70; 95%-CI: 1.35–5.41) and coming originally from the eastern part of Ukraine (OR = 2.96; 95%-CI: 1.34–6.55) increased the chance of these refugees to assess their health as poor. Conclusion: Social and economic determinants such as lack of social contacts for seeking help and material deprivation were found to be crucial for self-rated health and should be tackled via migration policies. Further, qualitative research is needed to better understand the mechanisms behind the factors affecting subjectively assessed health. [ABSTRACT FROM AUTHOR]

Financial stability appears more and more often in discussions of money and capital market analysis, the financial banking system and financial education in Eastern EU countries. The uncertainty hanging over the national economy due to the war on the eastern border, as well as the increase in the total debt of the country as a result of the state budget imbalances influenced by the increases in budget expenditures, the energy crisis, poor financial education and the increase in the inflation rate are only part of the causes. which periodically creates problems for the monetary authority regarding the financial stability of Romania. Financial stability and price stability are two sides of the same coin. We must always consider both sides. In this sense, the statistical information provided by the banking financial system has an important role in the analysis of financial stability and price stability

The study examines the main components of the organizational framework for macro-prudential management in the Member States of the European Union. The organizational design of macroprudential management is a competence of the Member States, which can themselves be grouped into different models. First, the study provides an overview of the international and EU standards and recommendations on the legal status of macro-prudential bodies in the Member States. Then, it lists those basic features of the legal status of macro-prudential bodies which are relevant with a view to the present inquiry before finally turning to address those very features. The study concludes that there is a tendency for the EU macro-prudential body to standardize the basic elements of the legal status of the Member State macro-prudential bodies. However, the process of standardization, in terms of the content of the institutional framework, is still at an early stage and a variety of legal solutions may be identified for each of the substantive aspects. As such, we claim that the institutional framework of macro-prudential policy is best described by a coordinated standardization of the substantive pillars with different formal features and with different legal solutions. [ABSTRACT FROM AUTHOR]

Financial stability appears more and more often in discussions of money and capital market analysis, the financial banking system and financial education in Eastern EU countries. The uncertainty hanging over the national economy due to the war on the eastern border, as well as the increase in the total debt of the country as a result of the state budget imbalances influenced by the increases in budget expenditures, the energy crisis, poor financial education and the increase in the inflation rate are only part of the causes. which periodically creates problems for the monetary authority regarding the financial stability of Romania. Financial stability and price stability are two sides of the same coin. We must always consider both sides. In this sense, the statistical information provided by the banking financial system has an important role in the analysis of financial stability and price stability. [ABSTRACT FROM AUTHOR]

In response to the Global Financial Crisis of 2008–2009, international financial regulators tightened the regime of banking supervision in order to minimize systemic risks, strengthen banking sector resilience and ensure financial stability. Given the increased level of credit risks and the issue of liquidity in the banking sector, as well as the role of banks in promoting the dynamics of the macro-environment, the objectives of banking regulation, through their interrelationship, may conflict with one another, and the research of this phenomenon is the subject of this article. The academic literature excludes research that provides definitive evidence on whether post-crisis banking regulation reform has achieved each of the abovementioned goals, determining the relevance of our study. The scientific novelty is attributed to the principally different approach proposed by the authors in assessing the effectiveness of the post-crisis model of international banking regulation, which is based on the analysis of the interaction and contradictions of the objectives of modern regulatory policy. The purpose of the study is to identify the extent to which the objectives of the post-crisis regulatory model were achieved and to what extent regulatory efforts contribute to the reduction of systemic risks. To achieve the research objectives, the authors applied methods of statistical and comparative analysis, synthesis of factors underlying the post-crisis regulatory mechanism, systematization, generalization and forecasting. The authors analyzed the main elements of the regulatory reform, examined the dynamics of the banking sector, and assessed the impact of the reform on systemic risks and economic growth. The research results show that tighter supervisory standards strengthened bank stress resilience, reduced systemic risks, and had a limited impact on economic growth. The article concludes that the objectives of banking regulation actively interact, but do not conflict: a consistent transition to the new Basel III standards allows each objective to be achieved.

This article analyses the use of powers by Czech presidents Václav Havel (1993–2003), Václav Klaus (2003–2013) and Miloš Zeman (2013–2023). The text is based on the concept of presidential activism, empirically examining mainly their interactions with governments and legislative vetoes. The results show that important incentives for presidential activism are non-cohesive coalition governments, minority governments, slim government majorities in parliament, the collapse of governments and a chaotic parliament. On the other hand, the internal cohesion of a government acts as a constraint on presidential activism. Popularly elected Zeman interpreted his powers much more widely in appointing and removing governments and ministers than Havel or Klaus, who were elected by parliament. By contrast, Zeman used his legislative powers less than his two predecessors, which was apparently influenced by their low success (with some exceptions) in this area. The president’s political proximity to the government was found to only sometimes limit his agility. Czech presidents have rarely been passive. A specific factor that affected activism, albeit only to a limited extent, was the poor health of Havel and Zeman at certain moments. To reduce systemic risks in the future, it would be useful to define more precisely the rules for appointing and dismissing a government and individual ministers.

Despite efforts to reduce greenhouse gas emissions, there are unavoidable impacts of climate change that are occurring now and will continue to unfold into the future. As the frequency and intensity of climate disasters increase, improving our understanding of climate risks will be critical for developing effective national climate adaptation actions. In recognition of the need for greater interdisciplinary and cross-sector collaboration to improve our understanding of systemic climate risks, a broad range of decision-makers across government and non-government organisations were engaged to identify Australia’s nationally significant risks through Australia’s first National Climate Risk Assessment (NCRA). In this paper, we describe the collaborative process developed for Australia’s NCRA and highlight the climate risk interdependencies identified for the infrastructure and built environment (I&BE) system. The I&BE system was chosen to illustrate the need to consider climate risk interdependencies, as this system’s sectors are heavily interconnected and fundamental to the functioning of critical infrastructure, essential services and supply chains. Using data collected through Australia’s NCRA, we illustrate how climate hazards create risks to individual I&BE sectors and how such risks aggregate, compound and/or cascade to form systemic risks. These systemic risks impact not only the I&BE system but also other systems, such as defence and national security, health and social support, and economy, trade and finance. Due to the high interdependencies of climate risks across sectors and systems, cross-sector collaboration is critical to address the interconnectedness of the systems and to develop effective climate adaptation strategies. A systemic approach to address climate risks will allow for response strategies that benefit multiple sectors simultaneously and reduce the likelihood of unforeseen negative compounding and cascading risks and maladaptation.

Systemic risks possess a high level of complexity and uncertainty that can be latent behind the veil of initial stress of possible disasters. They refer to, on the one hand, the functionality of interconnected systems and, on the other hand, the probability of indirect losses which can propagate through larger territories. Once considering the solid definition of resilience by the United Nations, the emphasis tends on systems’ ability to different facets of disturbance rather than the performance of the sum of each singular entity confronting the main shock. This paper aims to provide a broader perspective and a systematic review focusing on the commons of resilience and systemic risks in the frame of risk mitigation. The outcomes highlight the urgency of multidisciplinary actions, which have not been achieved yet since the 1999s earthquakes.

AbstractBanks give great attention to identifying the risks of adopting FinTech and the extent of its negative impact on their business. This study aims to explore the relationship between the risks of adopting FinTech in banks and their impact on performance, where the balanced scorecard was used to measure performance. This study identifies four risks, which are the most important risks affecting FinTech in banks: systemic risks, operational risks, outsourcing risks, and cyber risks. The data was collected through a questionnaire for 263 respondents at the managerial level of bank branches in Yemen from October to December 2021. Structural equation modeling PLS-SEM and a disjoint two-stage approach were used to approve the model’s constructs. The current study proved the validity of the proposed relationship between the risks and the effect of risk variables on each other, except for the impact of outsourcing risks on cyber risks. Also, the study result is that cyber risks and operational risks of adopting FinTech have a negative impact on banks’ performance. But the outsourcing risks of the adoption of FinTech have a positive impact on banks’ performance the systemic risks do not affect banks’ performance. Therefore, this study is considered one of the rare studies that contribute to analyzing the risks of adopting FinTech in banks and its impact on performance. In addition, it gives a clear picture for decision-makers in banks to identify the dark side of FinTech adoption.

Reflecting on the root cause framework devised for the research project preparing for extreme and rare events in coastal regions (PEARL) between 2014 and 2018 suggests a growing and evolving landscape of work building on the initial Pressure and Release (PAR) model. Empirical work using the PEARL framework added to debates about the nature, role and importance of institutions in the cross-scale interactions that drive disaster risk, even for small-scale disaster events. Going forward, its use opened up questions about our epistemologies and methodologies for root causes research in an era of systemic risk, uncertain futures and complex governance, and about tackling the layers of politics that can preclude action on reducing vulnerabilities. Contribution: The article suggests a new – and pluralised – agenda for root causes research going forward, which needs to be linked to critical understandings of the politics of root causes across disaster management and development actors and further action to reduce vulnerabilities.

Systemic risks possess a high level of complexity and uncertainty that can be latent behind the veil of initial stress of possible disasters. They refer to, on the one hand, the functionality of interconnected systems and, on the other hand, the probability of indirect losses which can propagate through larger territories. Once considering the solid definition of resilience by the United Nations, the emphasis tends on systems' ability to different facets of disturbance rather than the performance of the sum of each singular entity confronting the main shock. This paper aims to provide a broader perspective and a systematic review focusing on the commons of resilience and systemic risks in the frame of risk mitigation. The outcomes highlight the urgency of multidisciplinary actions, which have not been achieved yet since the 1999s earthquakes. [ABSTRACT FROM AUTHOR]

Focusing on the implementation of the 2003 UNESCO Convention for the Safeguarding of the Intangible Cultural Heritage (ICH), this article highlights the fact that the cataloging procedures, the way records are stored, and the metadata models used during the recording, visualization, and storage of ICH expression elements, vary from country to country. Especially in these days of great uncertainty, war conflicts, and systemic risks that may arise, it is vital to clarify what techniques will be used in the storage of ICH to ensure its unhindered preservation and dissemination over time across the globe. Using the systems thinking approach indicated for cases of great complexity, the process followed in Greece for depositing a new element in its local repository is described to demonstrate the need for a well-defined process by UNESCO, which must be followed worldwide, and which has not been defined so far. What are the potential challenges not only in determining the type of data, but also in choosing the best metadata model to use in each case when capturing these data? What technologies must be used for storing digital cultural heritage in such a way that will preserve it over time, defying physical and technological hazards? This article finally suggests how blockchain technologies (BT) can be effectively used to store the global ICH and ensure its continuity in future generations by creating a decentralized worldwide network between the heritage stakeholders. [ABSTRACT FROM AUTHOR]

Against the GameStop frenzy in 2021, this article defines meme investors as a new group of investors in financial markets while demonstrating meme investors' regulatory and social implications. By comparing meme investors with traditional investors under the MiFID II regime, this article finds that meme investors are significantly less wealthy than traditional investors, trade via digital trading platforms, and rely on social media information for investment decision making. This article argues that the emergence of meme investors is an expression of the public's desire for financial inclusion and their frustration with traditional financial institutions. Therefore, properly engaging with meme investors is crucial for rebuilding the public's trust towards regulators. After illustrating meme investors' exposure to default risks, legal uncertainty, and online misinformation, this article calls for regulators to engage with social media meme investors and improve financial literacy among the public. [ABSTRACT FROM AUTHOR]

Infrastructure projects often encounter performance challenges, such as cost overruns and safety issues, due to complex risk interactions and systemic risks. Existing literature treats risk interactions and systemic risks separately and relies on models that struggle with nonlinearities, adaptability, and practical applications, leading to suboptimal risk management. To address this gap, this paper uses machine learning (ML) algorithms to analyze historical project data and predict the impacts of risk interactions and systemic risks on future projects. The results show that ML-based models provide accurate and practical data-driven predictions of project performance under risk interactions and systemic risks. These findings are valuable for infrastructure project managers seeking to improve risk mitigation strategies and project outcomes. The paper lays also the foundation for future research on leveraging advanced predictive analytics in managing complex project risks more effectively. • Risk interactions and systemic risks are imperative for efficient risk management. • Existing models are impractical and involve complex simulations. • Data-driven model for risk interactions and systemic risk assessment is introduced. • Practical risk analysis approach to address overlooked risk assessment dimensions. • Intuitive model architecture for risk prediction. [ABSTRACT FROM AUTHOR]

The article is devoted to deepening the theoretical and methodological foundations of the study of banking risks and their impact on financial stability. Based on the generalization of the results of scientific research, the essence of the concepts "financial stability", "banking risks" was specified. Methodological approaches to the identification and classification of banking risks are substantiated. The study made it possible to distinguish between the concepts of financial stability and the financial fortitude of the banking system. It is emphasized that financial stability is a dynamic characteristic of the banking system, while financial fortitude reflects its current, static state. In the article, the types of risks inherent in the banking system are specified, and the classification features that allowed identification of the main risks that have the greatest impact on financial stability are identified. It has been established that in modern conditions, a significant threat to financial stability can be posed by a sharp deterioration of conjuncture in the global financial and/or commodity markets, which is transmitted to the banking system; "overheating" of one of the segments of the domestic financial market; a speculative attack on the national currency for keeping its exchange rate effectively pegged to the US dollar and deterioration of the trade balance; the crisis of the public finances, etc.

Financialization has brought new challenges to the international energy markets, making energy systemic risk a more complicated issue. One of the important features is the development of cryptocurrency, which has become a critical part of the global financial markets. As a consequence, the rise and fall of cryptocurrency can have nonnegligible impacts on the systemic risks in the international energy sector. This paper empirically tests this hypothesis using the equity data of the top 100 energy companies from 2014 to 2021. Specifically, we explore the extreme shocks of cryptocurrency using multiple bubble tests, and then we test to what extent bubbles in cryptocurrency markets can affect systemic risk in the energy sector. Our empirical results show that the formation of cryptocurrency bubbles, especially when the bubbles burst, significantly increases systemic risks in the energy sector. This effect retains the same in the recent COVID-19 pandemic period. In addition, oil and gas companies play an essential channel in the risk spillover from cryptocurrency markets to the international energy markets. [ABSTRACT FROM AUTHOR]

COVID-19 has showcased the systematic nature of risks. Its effects have spanned beyond the health sector causing severe economic disruptions. Sri Lanka's GDP contracted by 3.6% in 2020 from a 2.3% growth in 2019, reflecting the largest economic downturn recorded in the country's history. Although the COVID-19 pandemic has been largely perceived as unprecedented by most economic sectors and businesses functioning within them, pandemics are not a novel phenomenon given their intermittent occurrence in the past. This study aimed at examining the resilience of four key sectors in Sri Lanka during the COVID-19 pandemic, namely apparel, tourism, agriculture and construction. The study sought to identify the factors that have both enhanced and hindered their resilience during the pandemic and provide recommendations to strengthen their resilience for future pandemics and multi-hazard scenarios featuring pandemics. The study draws upon primary data gathered through four round table discussions carried out with a total of 30 key informants representing the selected sectors. The findings reveal that for economic resilience to be achieved within the selected economic sectors, resilience building measures should be undertaken at three levels: 1) orgaizational level; 2) sectoral level and 3) country level, while also recognising the need for consonance and congruence between measures taken at each level.

Reflecting on the root cause framework devised for the research project preparing for extreme and rare events in coastal regions (PEARL) between 2014 and 2018 suggests a growing and evolving landscape of work building on the initial Pressure and Release (PAR) model. Empirical work using the PEARL framework added to debates about the nature, role and importance of institutions in the cross-scale interactions that drive disaster risk, even for smallscale disaster events. Going forward, its use opened up questions about our epistemologies and methodologies for root causes research in an era of systemic risk, uncertain futures and complex governance, and about tackling the layers of politics that can preclude action on reducing vulnerabilities. Contribution: The article suggests a new -- and pluralised -- agenda for root causes research going forward, which needs to be linked to critical understandings of the politics of root causes across disaster management and development actors and further action to reduce vulnerabilities. [ABSTRACT FROM AUTHOR]

The article assesses the systemic risks of regional secondary vocational education in terms of its sustainability and balance. In addition, attention is focused on the situation in St. Petersburg and the Leningrad Region.

As climate change intensifies, attention to the issue of carbon emission reduction has gradually increased. This research constructs a complete set of indicators of carbon reduction attention and financial market stress and applies the quantile VAR method to calculate the volatility spillover between carbon reduction attention and financial market stress. We conclude with the following. Firstly, a relatively close volatility spillover association exists between carbon reduction attention and financial market stress. In the research system, carbon reduction attention mainly assumes the role of information receiver. Additionally, when examining the spillover status in different quantiles, the total spillover level shows an irregular "bowl" structure, while the net spillover level of each variable has different shapes. Secondly, the dynamic spillover level in the extreme quantile condition maintains a connectivity range of 60–80%, significantly higher than that of the median condition. Finally, this study finds two sets of significant complementary spillovers within the system, namely, "carbon reduction attention - crude oil market stress" and "stock market stress - real estate market stress", which provide investors with an opportunity to explore the potential of the carbon reduction attention and real estate market stress in the future. • Two-way spillovers noted between carbon reduction attention and financial markets. • Wavelet filtering and entropy methods were employed for index processing. • A QVAR approach is utilized to measure system connectedness in research. • Extreme quantiles showed heightened system connectivity versus the median. • This article identifies two significant complementing spillovers. [ABSTRACT FROM AUTHOR]

Amid global financial instability timely identification and propagation of systemic risks within both national and international banking systems becomes essential. It implies that it is highly important to assess not only inner factors of systemic banking risk and channels of its propagation, but also external sources which are due to cross-boarder spread of systemic banking risks. This article focuses on researching cross-boarder mechanism of systemic risks spread using method of decomposition of the variance of errors of VAR-models basing on monthly aggregated country-level indices of financial stress for EU-countries (CLIFS: Country-Level Index of Financial Stress). This investigation seems to be acute for coordinating macroprudential policies of national regulators of EU- countries and mastering macroprudential policy of Bank of Russia due to high globalization of financial markets of EU-countries and growth of financial innovations. The matrix of connectedness of 27 countries belonging to EU allows to obtain index of systemic connectedness (84 %), which reflects high dependence of each country on external shocks transferred from other countries-members of EU. Indices of net connectedness allow to divide countries into two groups: net-acceptors and net-donors of systemic risks. Empirical analysis has confirmed the hypothesis that countries subject more to inner shocks — Greece, Cyprus, Bulgaria and Croatia- have really survived starting from 2008 banking crises, explained with internal imbalances of banking systems.

The features of the functioning of small enterprises and their special kind – innovative have been considered. The problems, arising in the process of their functioning, and their manifestation in Russia have been identified and examined in the paper. As a positive experience in the paper, the experience of Moscow has been analyzed, having the most comfortable conditions for the functioning of small innovative enterprises, all necessary infrastructure. However, even with all its financial, scientific and technical capabilities, Moscow cannot provide all the necessary conditions for the successful implementation of the country’s innovative development strategy.

Non-technical summary All of humanity is facing the increasingly urgent challenge of finding pathways to the emergence of new, more sustainable patterns of living that promotes the co-evolution of natural and cultural systems. We address this challenge by proposing changes in scientific and scholarly research communities and transformations in roles, resources, actors, and institutions of scholarship (i.e., natural and social sciences, humanities, and arts), which can contribute substantially and effectively to co-designing solutions for sustainable, just, and equitable human societies. Technical summary The critical challenge facing humanity is the increasingly urgent need to find and implement pathways that lead humankind into a new stage of dynamic equilibrium that promotes the co-evolution of natural and cultural systems. We address this challenge for scientific and scholarly research communities and the transformations in roles, resources, actors, and institutions of scholarship (encompassing natural and social sciences, humanities, and arts), which can contribute substantially and effectively to co-designing solutions for coping with unsustainable practices and systemic risks. Our perspective builds upon a series of four workshops to identify and address global sustainability challenges at a regional scale. It is anchored in the view that nature and society are inextricably interwoven, that planetary boundaries are fundamentally societal, rather than solely environmental issues, that viable solutions to the global challenges mentioned above can be developed and most effectively implemented at a regional to local scale in conjunction with substantive changes in the education systems at all levels, and that these considerations require a complex adaptive systems approach to seeking and implementing solutions. We call for rethinking, finding creative approaches, and acting to make scholarship more capable of effectively creating just and equitable sustainable futures in diverse cultures and contexts. Social media summary Transforming scholarship and education to enable co-design of societal transformations to sustainable futures.

The article deals with the essence, factors, and patterns of macroeconomic risks mitigation. The purpose of the paper is to summarize and present a classification of systemic risks, to analyse principles and methods of macroeconomic risks evaluation. The methodological basis of the study is general scientific and special methods of cognition. The most extended analysis of systemic risks not only from the perspective of geographical and historical aspects but also in the context of modern economic processes is carried out. Results of the research prove that in the context of formation of a new economy of Ukraine and approval of the practice of timely prevention and mitigation of macroeconomic risks in accordance with imperative of modern time, it is necessary to: 1) give real state priority to the most advanced educational technologies. While providing maximum broad and equal access of youth to education, we should have the program for search and practical support of national intelligence phenomena in place; 2) create conditions for rehabilitation and advanced development of innovative directions of applied and, first and utmost, polytechnic sciences. It is the task of the state to ensure their financial support and direct employment at enterprises. All-round support of introduction of high-yield venture developments into the production; 3) secure efficient state protection of intellectual property, create legislatively the conditions for commercial usage of innovative achievements within the country; 4) encourage with maximum efficiency return of high-level engineers and blue-collar workers to the technological area; breathe new life into the system of professional and technical schools where information and programming professions prevail and which graduators would be engaged with priority into operations in unique productions; 5) create modern information market, allround support of introduction of a unified information field. Learning and striving to satisfy human needs without placing systemic risks on future generation being on the Earth should become the core principle of a civilizational development. Value/originality. We may lay down an essential principle of civilizational regulation of systemic risks when each state, specifically the international community, should set up (subject to all complexities of practical implementation) regulating constants, rules, and bans of such contents and in such direction to have business or entrepreneurial activities carried out ultimately in the risk-related mode, which would cause no detrimental effect on the economy as whole.

Abstract Although the notion of systemic risk gained prominence with respect to financial systems, it is a generic term that refers to risks of increasing importance in many domains—risks that cannot be tackled by conventional techniques of risk management and governance. We build on a domain-overarching definition of systemic risks by highlighting crucial properties that distinguish them from conventional risks and plain disasters. References to typical examples from various domains are included. Common features of systemic risks in different domains—such as the role of agents and emergence phenomena, tipping and cascading, parameters indicating instability, and historicity—turn out to be more than noncommittal empirical observations. Rather these features can be related to fundamental theory for relatively simple and well-understood systems in physics and chemistry. A crucial mechanism is the breakdown of macroscopic patterns of whole systems due to feedback reinforcing actions of agents on the microlevel, where the reinforcement is triggered by boundary conditions moving beyond critical tipping points. Throughout the whole article, emphasis is placed on the role of complexity science as a basis for unifying the phenomena of systemic risks in widely different domains.

Human health risks in dealing with floods in a river basin in South-Western Finland are analysed as an example of scientific and practical challenges in systemic adaptation to climate change and in integrated governance of water resources. The analysis is based on case reports and plans, on literature studies and on conceptual models of risks and risk management. Flood risks in the Northern European study area are aggravated by melt- and storm-water runoff, ice jams and coastal flooding. Flood risk assessment is linked with management plans based on EU directives as applied in the case area. National risk management policies and procedures of increasing scope and depth have been devised for climate change, water resources and overall safety, but an integrated approach to health risks is still largely missing. The same is true of surveys of perceived flood risks, and participatory deliberation and collaborative planning procedures for flood risk management in the case area, specifically for adaptive lake regulation. Health impacts, risks and benefits, socio-economic and systemic risks, and over-arching prevention, adaptation and compensation measures are not fully included. We propose a systematic framework for these extensions. Particular attention needs to be given to health risks due to flooding, e.g. from water contamination, moist buildings, mental stress and infrastructure damage and also from management actions. Uncertainties and ambiguities about risks present continuing challenges. It is concluded that health aspects of flooding are complex and need to be better included in assessment and control, to develop more integrated and adaptive systemic risk governance. [ABSTRACT FROM AUTHOR]

Reforming the regulatory system and supervision of audit activity in Ukraine is a basic condition for Ukraine’s accession to the European Community, and the introduction of international standards in the field of audit and supervision of audit activity and quality assurance of audit services should be correlated with the standards of European and world audit practice. The dominant factor in the effective functioning of independent control is the choice of a model of supervision of the mechanism for its implementation; effectiveness of the system of monitoring the quality of audit services; effectiveness of legal and regulatory framework of audit activity. The regulation of audit activity is to coordinate direct and indirect actions aimed at the subject of audit activity with the purpose of ensuring the quality of audit services and minimizing the level of audit risk. The purpose of the research is: analysis of the basic models of regulation of audit activity aimed at improving the legal regulation of economic relations in general and subjects of audit activity in particular. Determination of expediency of implementation of public oversight as monitoring of the process of implementation of audit activity in the context of granting the right to conduct audit activities to individuals, implementation of standards of professional ethics and quality control of audit services, permanence of education and imposing sanctions for non-compliance by auditors with the requirements of the current legislation. Method (methodology). In the process of research, general scientific and special methods of scientific knowledge are used: abstract-logical (in the disclosure of theoretical and methodological foundations of public oversight); synthesis and system analysis (substantiation of the essential characteristics of the system of public oversight); system analysis and theoretical generalization (definition of institutional prerequisites for the introduction of public regulation in audit activity); logical generalization (to substantiate approaches and proposals on improving the ways for ensuring the quality of audit and optimizing the implementation process of the public oversight body). Results. According to the results of the study, an attempt is made to present the author’s understanding of the definition of “state regulation” and “public oversight” in the context of the functioning of subjects of audit activities. The expediency of adjusting the vector of regulatory policy regarding the implementation of international standards in the field of audit and supervision of audit activities and quality assurance of audit services is determined. Ways and directions for the implementation of the public supervision body in the audit system of Ukraine are outlined. Improvement of the financing model of the public oversight body with the purpose of minimization of corruption levers of influence is proposed. Practical implications. Taking into account the results of the study, it is proposed to provide in the Budget Code of Ukraine and the Law of Ukraine “On State Budget for the Current Year” a separate article on the costs of partial financing of the Public Audit Oversight Board. This, a priori, will reduce the corruption component of its activities and, accordingly, minimize corruption risks. Value/originality. For the first time, it is proposed to change the structural component of the financing model of the Public Audit Oversight Board and the relevant legislative proposals on clarifying and adjusting the statutes of the current legislation of Ukraine.

This article analyzes the limits of global governance and policy coherence for development (CPD), based on the inescapable trilemmas of the global economy and the CPD approach. The analysis considers some of the main contradictions and institutional and political dilemmas that impact the system of international relations and the dynamics of development in an increasingly interdependent and complex world. The article adopts a macro-institutional approach with a historical and multilevel perspective, in order to highlight the political economy of contemporary development and the obstacles to the promotion of a global governance agenda for a sustainable development.

Capital buffers can improve the stability of the banking system, but they come at a cost. This study explores the efficient macro-prudential regulation of systemic risk from the perspective of capital network reconstruction. A model of option pricing is proposed to determine the market value of sector credits. Consequently, systemic risk is measured by both credit and interbank contagion risks. Credit network reconstruction is then optimized to minimize systemic risks. Our analysis was based on data from China's banking systems between 2008 and 2020. In different stress tests, the credit network reconstruction generally optimizes systemic risk to the lowest level. At the same time, it may save about 20% to 140% of the cost of capital. The optimization mechanism analysis shows that large banks with stability advantages share more shocks than small banks by reconstructing their sector credit network. As a result, the contagion process of systemic risk is prevented, and bankruptcy cascades are eliminated. These results imply that credit network reconstruction holds great potential for preventing systemic risks. • Credit network reconstruction has more advantages of efficiency in preventing systemic risk than capital requirements. • Systemic risk optimization is optimized through increased common credits where big banks share more shocks from the other banks. • Stability of the banking system is promoted when big banks take more risks than their market shares. [ABSTRACT FROM AUTHOR]

In spite of the fact that both national and international bodies of authorities, such as national Central Banks, International Monetary Fund, the World Bank, or The Basel Committee have approached risk management, at present there is clear indication that the implementation of Basel III will improve the financial sector stability. The significance of the need to have a unified approach in analyzing risks, especially the credit risk which is the most overwhelming of them all, lay in the fact that risks have the ability to directly affect the financial stability and ultimately lead to systemic risks. In this context, what the economic crisis has done was to highlight the importance of approaching risks with the utmost care. The direct connection between economic growth and banking system (Kyriaki Kosmidou, Pasiouras, & Floropoulos, 2004; Liu, Molyneux, & Wilson, 2013; Perera, Skully, & Chaudrey, 2013) but also the influence that the banking system has on the economic growth (Borio, 2014) makes it imperative for supervisory authorities to implement measures in order to maintain the stability of banking system. The European Central Bank has implemented the Single Supervisory Mechanism and the Single Resolution Mechanism in order to have a banking system much better prepared to face any financial or economic shocks.

Reflecting on the root cause framework devised for the research project preparing for extreme and rare events in coastal regions (PEARL) between 2014 and 2018 suggests a growing and evolving landscape of work building on the initial Pressure and Release (PAR) model. Empirical work using the PEARL framework added to debates about the nature, role and importance of institutions in the cross-scale interactions that drive disaster risk, even for small-scale disaster events. Going forward, its use opened up questions about our epistemologies and methodologies for root causes research in an era of systemic risk, uncertain futures and complex governance, and about tackling the layers of politics that can preclude action on reducing vulnerabilities., Contribution: The article suggests a new - and pluralised - agenda for root causes research going forward, which needs to be linked to critical understandings of the politics of root causes across disaster management and development actors and further action to reduce vulnerabilities., Competing Interests: The author declared that she has no financial or personal relationship(s) that may have inappropriately influenced them in writing this article., (© 2023. The Author.)

Although the notion of systemic risk gained prominence with respect to financial systems, it is a generic term that refers to risks of increasing importance in many domains—risks that cannot be tackled by conventional techniques of risk management and governance. We build on a domain-overarching definition of systemic risks by highlighting crucial properties that distinguish them from conventional risks and plain disasters. References to typical examples from various domains are included. Common features of systemic risks in different domains—such as the role of agents and emergence phenomena, tipping and cascading, parameters indicating instability, and historicity—turn out to be more than noncommittal empirical observations. Rather these features can be related to fundamental theory for relatively simple and well-understood systems in physics and chemistry. A crucial mechanism is the breakdown of macroscopic patterns of whole systems due to feedback reinforcing actions of agents on the microlevel, where the reinforcement is triggered by boundary conditions moving beyond critical tipping points. Throughout the whole article, emphasis is placed on the role of complexity science as a basis for unifying the phenomena of systemic risks in widely different domains. [ABSTRACT FROM AUTHOR]