New research published in Frontiers for Sustainable Resource Management delves into the impact of natural disasters and climate change on socioeconomic systems, emphasising the need for models that consider human behaviour and interactions to predict and manage these risks effectively. The study introduces a “gap approach” to assess fiscal risks associated with disasters, aiming to identify critical stress points in a system and manage these gaps to prevent significant disruptions. Furthermore, the article addresses the challenges in policy-making and stresses the importance of international finance in supporting countries to manage disaster-induced fiscal risks. The authors advocate using Agent-Based Models (ABMs) to improve the understanding and management of complex system non-linear dynamics, aiming to enhance resilience and sustainability in the face of climate-related hazards. The paper also provides insights into managing financial risks and building resilience against natural hazards and climate change, highlighting the significance of international cooperation and funding to support these efforts.