Assessing risk managers' perceptions of risk mitigation strategies under a climate change and energy transition context.

Climate change and the energy transition are long-term challenges that could occur in a chaotic and uncertain way. The potential and varied impacts of these phenomena on existing human systems is leading to a rethinking of the ability of organisations to adapt life-sustaining services and business supply chains. However, the different scenarios surrounding these two phenomena are not always well understood by the public, by those who manage critical infrastructure, businesses, key institutions and organisations and sometimes even by risk managers. In order to assess whether current risk management strategies are able to cope with these two phenomena, it is important to understand the knowledge and perceptions of risk managers of the impacts of climate change and energy transition. 

 

This research investigates the perception of climate change and energy transition by risk managers in order to (i) assess their understanding of the impact of the energy transition and climate change on current lifeline services and business supply chains, (ii) evaluate the needs of risk managers to integrate these phenomena into risk management strategies. Results of ongoing semi-structured interviews and questionnaires will be shared. Overall, the aim of this research is to improve cross-sectoral risk management strategies by integrating a systemic approach into risk management methodology and risk reduction strategies. 

 

The research has been conducted in Chile, which is a country critical  to the global energy transition. Chile  is the world's primary producer of copper (30%) and ranks second in global lithium production (20%), two minerals coveted by different economic sectors and necessary for the global energy transition. In addition the region is exposed to numerous natural hazards, including climate related phenomena and associated extreme weather and temperature events. The integration of risk management strategies that incorporate both climate change and a change in energy supply is crucial in order to avoid significant disruptions and cascading effects in the supply chains of these increasingly sought-after minerals.