# Risk Management

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Basic Risk and Response Cycle
Application: Risk and Response Cycle with intergration of Satellite technology and smartphone (see Learning Task)
SDG11: Sustainable Cities and Communities - Learning Resource supports the SDGs - UN-Guidelines[1]

Risk management has two main tasks:

• determine and calculate the risk and
• organize the response to the identified risk:
• Improve the prepardness to an event,
• Reduce the probability of an event by risk mitigation activities,
• Reduce the impact of an event

## Response Time

When someone has a heart attack or a stroke the medical response is urgent in comparison to a broken leg that has in general a long time span in which medical response will not have a serious impact on the health condition of the patient. For the link between risk and response to the available time span is crucial for the assessment of the impact on an hazardous event. Going back to example of a patient with a heart attack, the main question is

```   "How long does it take until an ambulance with medical support is available?"
```

People living close to the health care facility have a better response time in an case of emergency than people living in rural ares. This leads to that fact that risk depends on spatial allocation of resources and distance of an event to the resource that can be used for risk mitigation (see Spatial risk management).

## Learning Task

Artificial lights can be detected from satellites. Light emission during night is a proxy variable for the availability of electricity after disasters.
• (Risk & Response Cycle) On this page on right you find an example of an extended risk and response cycle, with a focus on satellite technology and smartphones. Take your personal expertise as starting point and create your own cycle for a domain of your choice.
• (Planetary Boundaries) Approach risk management from the angle of planetary boundaries[8] and comsumption of planetary resources. Create a first risk mitigations concept that you think it will work in your family, school, university, town or region.
• (Sustainable Development Goals) Consider people in developing countries that battle to survive the next day, week, month. Describe the challenges for long-term goals in the context of climate change and the planetary boundaries (see Sustainable Development Goals SDG of United Nations[9]). Explain how Risk Management could contribute to sustainable communities and sustainable development in general!
• (Systems Thinking) If we apply systems thinking in risk management, we will now look on a basic case, where someone living in a semi-arid region will cut down trees for fire wood or for a campfire. Systems analysis will tell us, that cutting down trees will increase erosion of soil and it will cause long-term food problem of agricultural production.
• Analyze what you would do with the last trees, if you are risk literate and you know about this dependencies, but it gets ${\displaystyle 2^{o}C}$ during night?
• What are you implication for short-term and long-term risk management?
• (Risk Management for Electricity as Resource): Light emission during night is a proxy variable for the availability of electricity after disasters. Describe the procedure of assessment from the analysis of satellite images (before/after the event), to assessment of the impact of missing electricity for health service delivery, communication or provision of services in general. How would you assess the vulnerability in your hometown in comparision to other areas in the world?

## Resources

• Risk Management - Content Matrix
• Risk Literacy describes the individual skill/expertise to manage the risk
• Spatial risk management, risk vary in different geolocation, spatial risk management takes the spatio-temporal variations of risk into account
• Agricultural Water Pollution Management
• Systems Thinking and Risk Economy, environment, public health, social and cultural conditions for risk are connected and risk mitigation activities in Systemic Risk)
• Disaster Management considers risk management for disasters. Disaster Risk Reduction aims to reduce the damage caused by natural hazards like earthquakes, floods, droughts and cyclones, that cause a serious disruption of the functioning of a community or a society[10]. Disasters involve widespread human, material, economic or environmental impacts, which exceed the ability of the affected community or society to cope using its own resources. The systemic risk is managed in different phases from immediate response after an event and long-term prepardness measures and capacity building to reduce the vulverability.

## References

1. UN-Guidelines for Use of SDG logo and the 17 SDG icons (2016/10) - http://www.un.org/sustainabledevelopment/wp-content/uploads/2016/10/UN-Guidelines-for-Use-of-SDG-logo-and-17-icons.October-2016.pdf
2. Stulz, R. M. (1996). Rethinking risk management. Journal of applied corporate finance, 9(3), 8-25.
3. Power, M., & McCarty, L. S. (1998). Peer reviewed: a comparative analysis of environmental risk assessment/risk management frameworks. Environmental science & technology, 32(9), 224A-231A.
4. Cagliano, Anna Corinna, Sabrina Grimaldi, and Carlo Rafele. "A systemic methodology for risk management in healthcare sector." Safety Science 49.5 (2011): 695-708.
5. Rockström, J., Steffen, W., Noone, K., Persson, Å., Chapin III, F. S., Lambin, E., ... & Nykvist, B. (2009). Planetary boundaries: exploring the safe operating space for humanity. Ecology and society, 14(2).
6. McMichael, A. J., Woodruff, R. E., & Hales, S. (2006). Climate change and human health: present and future risks. The Lancet, 367(9513), 859-869.
7. O'connor, R. E., Bard, R. J., & Fisher, A. (1999). Risk perceptions, general environmental beliefs, and willingness to address climate change. Risk analysis, 19(3), 461-471.
8. Steffen, W., Richardson, K., Rockström, J., Cornell, S. E., Fetzer, I., Bennett, E. M., ... & Folke, C. (2015). Planetary boundaries: Guiding human development on a changing planet. Science, 347(6223), 1259855.
9. Griggs, D., Stafford-Smith, M., Gaffney, O., Rockström, J., Öhman, M. C., Shyamsundar, P., ... & Noble, I. (2013). Policy: Sustainable development goals for people and planet. Nature, 495(7441), 305-307.
10. United Nations Office for Disaster Risk Reduction (UNSDR) (2017) http://www.unisdr.org/we/inform/terminology