Strategic approaches for managing future global shocks

Measured at the macro level, many if not most countries have been reaping the economic benefits of global economic integration, but there is a tendency to turn a blind eye to new vulnerabilities that result. Complex systems in the modern risk landscape contain various vulnerabilities to shocks that can result in rapid and widespread negative spillovers. Such broad exposure draws attention to the need for strategic preparation and international co-operation to support prevention and surveillance. This chapter considers elements of a strategic blueprint to better manage the known and unknown vulnerabilities that could produce global shocks. The key elements of the strategy include strengthening governance capacities through international institutions and norms, and building societal resilience. Each of these elements involves various components such as enhancing governance through the use of publicprivate partnerships, adapting risk communication to modern society and the use of new technologies, and improving the capacity of insurance solutions to enable rapid recovery.