World Economic Forum’s 2016 Global Risks Report discussed at Davos
The report, undertaken for the past 11 years with the Wharton Risk Management Center, relates opinions of 750 experts who assessed 29 global risks for both impact and likelihood over a 10-year time horizon and is being released today in advance of the Forum’s annual meeting taking place on January 20-24 in Davos, Switzerland.
· Chiefly, the report finds an increased likelihood of all risks – environmental, geopolitical, societal, economic, and technological, looks set to shape the global agenda in the coming year.
· Failure of climate-change mitigation and adaptation is the number one global risk in terms of impact.
· Large-scale involuntary migration tops the list of risks in terms of likelihood and is the fastest rising in terms of both impact and likelihood.
· Cyberattacks are now considered the greatest risk to doing business in North America.
The report also devotes more emphasis on not just risks, but on possible solutions and examples of successful initiatives in the private, public and non-governmental sectors around the world. The business community, working with the public sector, has a critical role to play to improve global risk management.
Erwann Michel-Kerjan, executive director of the Wharton Risk Management Center and member of the advisory board of the World Economic Forum Global Risks initiative notes:
“We are getting better at anticipating future shocks. Our next task is to quickly build much more effective resilience capability. I believe that if designed and executed well, restructuring some of the $300 trillion global financial assets towards this new resilience investment agenda can be a game changer. Let’s join forces to do that.”