Governance defintions

Governance mechanisms and approaches for complex systems definitions

What do we mean by governance mechanisms and approaches for complex systems?

As mentioned in the concepts and definitions section, definitions vary depending on context and subject matter. On this page, these definitions are related to governance that the SCS programme and stakeholders who participated on the govern workstream have come up with to contextualise the reader.

Governance definitions

1. Mechanisms which are intended to influence, direct, or control the behaviour of a system or organisation’. These may include a system of rules, practices, and processes that affect responsibilities, authority, communication, execution, measurement, and control mechanisms.
2. Human-based procedures, methods, processes by which a system is influenced, directed, overseen and held accountable for achieving its defined purpose.
3. Incentives and requirements for organisations to adhere to best practice through direct regulation, so-called soft law approaches or a consensus in the form of national and international standards.

Important words to note there are influence, control, direct. The intention of establishing such structures is to steer the behaviours of those involved in them. Hence it is also appropriate to assert agency, power, and authority of stakeholders in existing hierarchical institutions that define such structures and mechanisms as well as the processes they use to establish them.  

Following this, it is relevant to differentiate between two different types of governance: formal governance and informal governance.

Governance types

• Formal governance
• Informal governance

Why is governance relevant for safety in complex systems?

The way decision making happens within systems is important for effective governance. This relates to how power works and operates in the system. Each stakeholder brings  their own motivations, goals and may not always share the same understanding of the overall purpose of the system. Competing priorities, power dynamics, inequality and cultural differences interact make it very difficult to anticipate, understand or know the dynamics and outcomes, sometime leading to risks.

Complex systems governance is multi-layered and distributed. This implies that decisions and choices happen on different geographic scales (eg. international, national, regional, local) and different levels within hierarchical systems (governance, management, tasks and operations). Behaviours emerge from the mechanisms and structures established in the sub-systems that merge those complex systems.

The characteristics of complex systems challenge formal governance structures.

The characteristics of complex systems challenge formal governance structures

Traditional system safety engineering addresses part failures and their interactions, but in complex systems, failures can happen at system level.

This means a system can lose capabilities while still functioning, owing to the nature of complex systems and the concept of emergence.

Resilience and robustness are strategies to reduce risk, with resilience vital for managing the complex uncertainties . This may include maintaining system safety even with reduced capabilities, beyond returning to an original state. Installing redundant controls or mechanisms is a common practice to ensure desired behaviours are achieved. For example, national industry follow international safety standards, governments set laws and regulations to comply with such standards and then enforced by a local body, then industries integrate those in their internal mandates and organisational culture for compliance. Ensuring accountability at every system level ensures that reinforcement occurs.

Assigning accountability to one individual, role, or organisation can be difficult due to the challenges posed by consequences from system complexity.

Further, it may not be appropriate to hold someone to account even if they were (formally) accountable for something but they did not have moral responsibility. Advocating for safety in complex systems requires understanding of the interactions within it. This can occur between different layers of a system that people are embedded in, be that individual, societal and physical.

Layers of decision making in complex systems

The SCS initial framework highlights that gaps between among various levels of decision-makers often contribute to systemic failure. These layers include governance, management, and task-technical mechanisms. Breaking these down helps clarify the sperate roles and responsibilities involved, while also aligning efforts to ensure stability and effectiveness. In this context, the layers can be understood as formal governance, management, and task-technical (informal governance) mechanisms.

Governance in a complex system assists to provide frameworks or approaches that can help to govern their design and create safer outcomes. It can involve a multitude of stakeholders, such as national government, professional bodies, regulatory bodies, and the wider society, who collaboratively help to steer towards a safer future.

To read more on reflections exploring the topic, go to Govern reports and resources.

Formal governance layer

This layer involves the rules and guidelines that organisations must follow to ensure they operate responsibly and safely. Those responsible are senior level decision-makers, government officials and authorities. These decisions can come in the form of laws, regulations, or agreed-upon standards at national and international levels. Governments and authorities create these regulations to reflect what society considers an acceptable level of risk in how systems function.

Management layer

This layer is responsible for organising and overseeing the various tasks related to designing, operating, and maintaining systems. This is often for those in managerial roles within organisations, who handles important aspects like protecting company information, managing supply chains, and preserving knowledge within the organisation for systems that evolve over time. It ensures that risks are managed and that decisions about system design are made thoughtfully.

Tasks and technical layer

This layer focuses on the technical design and safety processes that ensure systems operate with an acceptable level of risk. Those responsible can be systems operators, final users, grassroots organisations, community groups (where informal governance occurs). It involves continuous monitoring to spot any differences between expected outcomes and actual performance, allowing for adjustments. It covers both the technology itself and the roles of users, operators, and other stakeholders interacting with the system. In some cases, users might unknowingly or unwillingly be part of the system but are still affected by its risks.