The velocity of political and technological change is compelling organisations to strengthen their resilience against shocks and surprises.
In its annual Global Risks Report, the World Economic Forum, in partnership with
Marsh & McLennan Companies, outlined the perspectives of global experts and decision-makers on the most significant risks that face the world. This year’s report, which
we covered here, looks at numerous risks but focuses in particular on four key areas: environmental degradation, cybersecurity breaches, economic strains and geopolitical tensions.
From a New Zealand standpoint, natural catastrophes, extreme weather events, large cyber attacks, the asset bubble and urban planning are the top five risks identified.
The report cautions that business leaders are struggling to keep up with the accelerating pace of change.
“We must take seriously the risk of a global systems breakdown,” WEF founder and executive chairman Klaus Schwab said. “Together we have the resources and the new scientific and technological knowledge to prevent this.”
The challenge is to find the will and momentum to work together for a shared future, Schwab added.
Overall, the report suggests that experts are preparing for another year of heightened risk. Three key findings emerged from this year’s survey:
- Structural and interconnected nature of risks in 2018 threatens the very system on which societies, economies and international relations are based.
- The positive economic outlook gives leaders the opportunity to tackle systemic fragility affecting societies, economies, international relations and the environment.
- Environmental risks dominate the Global Risk Perception Survey for the second year running; when asked about risk trajectories in the coming year, 59% of answers pointed to increasing risks.
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