Holistic framework for COVID-19 pandemic as systemic risk

Abstract

Purpose: The aim of this study is to provide knowledge to manage the holistic nature of the COVID-19 pandemic. Design/Methodology/ Approach: The theoretical framework of COVID-19 research forms a matrix of multidiscipline scientists from medics, epidemiologists, sociologists, economists, and full life cycle performance. This ground level creates systemic risk in form of White Swan. The next layer are costs of pandemic private, public, club, merit costs. This is Black Swan model of COVID-19 pandemic as systemic risk. In the top layer we see Green Swan and pure uncertainty. Each of the elements of a Systemic Matrix is different in every country. Findings: In our opinion, COVID-19 pandemic should be described in the language of systemic risk. There is uncertainty if nature of COVID-19 is endogenous or exogenous? The matrix of COVID-19 understanding is crowned by well-being and the perception of the risk of COVID-19 among the various participants in the economy. Practical Implications: Knowing that COVID-19 pandemic is Green Swan we may use Resolution Funds to support Public-Private network for testing and vaccines. Originality/value: Our theoretical language opens cross disciplinary communication on COVID-19 pandemic. Now, we can discuss on distribution of cost of COVID-19 pandemic between participants of this multilevel systemic process. This is also cost of blocked transgenerational transfers. Some people lost life, some lost social capital because of the loss of grandparents.