A methodological framework to operationalize climate risk management: managing sovereign climate-related extreme event risk in Austria

By developing and applying a methodological approach to climate risk management (CRM) in the decision context of sovereign risk (flooding) in Austria, this paper reviews the usefulness of CRM, and based on these insights, inform applications in other decision contexts. The methodological approach builds on multiple lines of evidence and methods. These comprise of a broad stakeholder engagement process, empirical analysis of public budgets, and risk-focused economic modelling.

Findings show that a CRM framework is able to inform instrumental as well as reflexive and participatory debate in practice. Due to the complex interaction of social–ecological systems with climate risks, and taking into account the likelihood of future contingent climate-related fiscal liabilities increasing substantially as a result of socioeconomic developments and climate change, authors identify the need for advanced learning processes and iterative updates of CRM management plans. The paper suggests that strategies comprising a portfolio of policy measures to reduce and manage climate-related risks are particularly effective if they tailor individual instruments to the specific requirements of different risk layers.

Mitigation and Adaptation Strategies for Global Change, pp 1-24, DOI: 10.1007/s11027-016-9713-0