Systemic risk – from pandemics and climate change to financial instability and income inequality – is an imminent and significant threat to our society. Today, we see the impact of numerous system risk manifestations. We need to understand what it is, and how we can deal with it.
Features of these types of risk include massive interconnectedness, i.e. the impact in one area of the world’s economy has a ripple effect across the globe; and externality, defined as ‘damaged caused by somebody’s activities for which they do not pay’.
A typical example of this is climate change, as CO2 levels are creating the most damage and those who are doing the most damage are not paying for their damage. There are a number of SDGs which are impacted by systemic risk manifestation, such as climate change.
But what should we do as cooperatives and mutuals to assist? Cooperative and mutual businesses need to fulfil their missions with regard to the SDGs.
Aiming to fulfil the Goals; agreeing with industry agreements and standards; creating plans and setting targets for each SDG plan.
