Risk, Reward, and Resilience Framework: Integrative Policy Making in a Complex World

ABSTRACT

In the last few years, many states around the world have faced a series of shocks to their economies-from the seizing up of global supply chains to the weaponization of trade and finance-that have catapulted concerns about how to strike a balance between risk, reward, and resilience into the center of public discussions and policy-making. This Article provides a new Risk, Reward, and Resilience Framework, which synthesizes and integrates insights from diverse disciplines and domains. I set out the drivers of each element, how they are connected, and resulting policy choices. To illustrate its practical application, I apply Risk, Reward, and Resilience Framework to two case studies involving economic interdependence the COVID-19 supply chain shock and China's economic coercion of Australia. In doing so, I provide policymakers with a new mental model for thinking about and working through complex policy challenges.