SYSTEMIC RISK
| Collection | International Encyclopedia of Systems and Cybernetics |
|---|---|
| Year | 2004 |
| Vol. (num.) | 2(2) |
| ID | ◀ 3431 ▶ |
| Object type | General information |
Any risk which specifically results of the complexity of a system.
The specific risk is an ever possible consequence of some unadverted instability within the system, due to some architecture error if man-constructed, or more exceptionally of some inherent property in a natural system.
Man-constructed systems, when complex, are very difficult to fully understand and to manage properly. Furthermore, they are generally more or less unstable (submitted to chaotic determinism).
Natural systems may contain unknown long-term instabilities, as for example in the case of geological faults activity.
In human systems a supplementary factor of risk is the ever latent possibility of operative or management errors that may trigger a catastrophic course.