Beyond the pandemic: new report reveals global risks 2022
World Economic Forum today presented a report that highlights climate change and social crises as the main threats at the global level
Climate risks dominate global concerns as the world enters the third year of the pandemic. According to the Global Risks Report 2022, while the main long-term risks are related to the climate, the main short-term global concerns include social differences, livelihood crises and deteriorating mental health.
Furthermore, most experts believe that the global economic recovery will be volatile and uneven in the next three years.
Now in its 17th edition, the report encourages leaders to think outside the quarterly reporting cycle and create policies that manage risk and shape the agenda for years to come. It explores four areas of emerging risk: cybersecurity, competition in space, disorderly climate transition, and migratory pressures, each of which requires global coordination for successful management.
“The economic and health imbalances are exacerbating social divisions. This creates tensions at a time when collaboration within societies and between the community International will be critical to ensuring a faster and more consistent global recovery. The world leaders must come together and take a coordinated multisectoral approach to addressing the unceasing global challenges and building resilience before the next crisis, ”said Saadia Zahidi, Managing Director of the World Economic Forum.
Carolina Klint, Risk Management Leader, Continental Europe at Marsh, said: “As companies recover from the pandemic, they are rightly focusing on organizational resilience and ESG credentials. With cyber threats now growing faster than our ability to permanently eradicate them, it is clear that neither resilience nor governance is possible without credible and sophisticated cyber risk management plans. Similarly, organizations must begin to understand their spatial risks, in particular the risk run by satellites, on which we have become increasingly dependent, given increasing geopolitical tensions and ambitions".
Peter Giger, Group Chief Risk Officer, Zurich Insurance Group, said: “The climate crisis remains the greatest long-term threat facing humanity. Failure to act on climate change could reduce world GDP by one sixth; Furthermore, the commitments made at COP26 are still insufficient to reach the 1.5 ° C target. It is not too late for governments and companies to act on the risks they face and drive an innovative, decisive and inclusive transition that protects economies and people”.
The report ends with reflections on the second year of the COVID-19 pandemic, providing new information on resilience at the local level. The chapter also draws on the World Economic Forum (Chief Risk Officers Community and Global Future Council on Frontier Risks) risk expert communities to provide practical advice for implementing resilience in organizations.
The Global Risks Report 2022 has been prepared with the invaluable support of the Global Risks Advisory Board of the World Economic Forum. It also benefits from ongoing collaboration with its strategic partners, Marsh McLennan, SK Group and Zurich Insurance Group and academic advisors from the Oxford Martin School (University of Oxford), the National University of Singapore and the Wharton Risk Management and Decision Processes Center ( University of Pennsylvania).