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In the last few years, the world has experienced numerous extreme droughts with adverse direct, cascading, and systemic impacts. Despite more frequent and severe events, drought risk assessment is still incipient compared to that of other meteorological and climate hazards. This is mainly due to the complexity of drought, the high level of uncertainties in its analysis, and the lack of community agreement on a common framework to tackle the problem. Here, we outline that to effectively assess and manage drought risks, a systemic perspective is needed. We propose a novel drought risk framework that highlights the systemic nature of drought risks, and show its operationalization using the example of the 2022 drought in Europe. This research emphasizes that solutions to tackle growing drought risks should not only consider the underlying drivers of drought risks for different sectors, systems or regions, but also be based on an understanding of sector/system interdependencies, feedbacks, dynamics, compounding and concurring hazards, as well as possible tipping points and globally and/or regionally networked risks. Plain Language Summary: In recent years, the world has faced severe and frequent droughts, resulting in significant direct and indirect impacts. However, our understanding and assessment of drought risks are still limited which has important implications for risk management. Here, we propose a new approach—a systemic perspective on drought risks—to effectively assess and manage drought risks. Our framework highlights the interconnected nature of drought risks, impacts and responses. We demonstrate the framework's application by analyzing the 2022 drought in Europe. This research emphasizes the need for a comprehensive understanding of drought risks and offers a practical tool for policymakers and researchers to guide future drought risk research and policy. Key Points: Drought risks are on the rise and their effects are increasingly felt across communities, economic sectors, ecosystems, borders and entire societiesTo effectively assess and manage drought risks, a systemic perspective is neededWe propose a novel systemic framework to better inform drought risk research and policy [ABSTRACT FROM AUTHOR]