You don't have to be a risk manager to know that the world faces a range of rapidly changing challenges. But how exactly are these risks changing, and which ones are the most likely, or the most impactful? The World Economic Forum attempts to answer these questions. The Swiss-based independent international organization aims to improve the state of the world by engaging public, private, and academic leaders to shape global, regional and industry agendas.
The Forum recently published their 2014 Global Risks Report, which analyzes a survey of over 700 leaders and decision-makers on 31 selected global risks. Survey respondents were asked directly to nominate their risks of highest concern, which placed economic and social issues firmly at the top.
The Risk Report distilled down the survey responses into the five risks considered most likely and most impactful since 2007 (see below).
As the table illustrates, environmental risks, such as climate change, water scarcity, and extreme weather events have become more prominent since 2011, while health-related risks (pandemics and chronic disease) have become less so. Geopolitical risks such as global governance failure, are now less concerning than socioeconomic risks (income disparity, unemployment, fiscal crises, etc.).
Cyber attacks are also featured prominently in the matrix, along with the breakdown of critical information infrastructure, reflecting the increasing digitization of economies and societies and their dependence on information and data.
Just as The World Economic Forum aims to help leaders and societies make decisions that will benefit the global community, Palisade's risk management software aims to support managers and decision makers as they plan for changes to come.