Systemic risk capability assessment methodology: A new approach for evaluating inter-connected risks in seaport ecosystems

Abstract

The ever-increasing systemic risks posed by disasters and the impacts of climate change have emerged as formidable challenges that demand comprehensive assessment and understanding. This study endeavours to address this critical need by introducing the innovative Systemic Risk Capability Assessment (SRCA) methodology. Unlike traditional risk assessment approaches, SRCA is uniquely designed to not only assess systemic risk but also operationalize its management, making it particularly suited for safeguarding critical infrastructure, with a specific focus on seaports. The SRCA methodology, offers a quasi-quantitative framework that goes beyond conventional risk assessment, enabling a deeper understanding of the dynamics and interdependencies inherent to seaport ecosystems. In the pursuit of demonstrating the practicality and versatility of the SRCA methodology, this study applies the model to two hypothetical ports, accompanied by the utilization of synthetic data. By doing so, it elucidates the step-by-step analysis facilitated by SRCA, highlighting its potential for enhancing the resilience of seaports to systemic risks. The results underscore the limitations of traditional risk assessment methodologies when confronted with the complexity of systemic risks in seaports, thereby emphasizing the significance of the proposed SRCA methodology. In conclusion, this research contributes significantly to the field of systemic risk management, particularly within the critical infrastructure domain.