Environment-related risks and rising global tensions are among the most threatening and pressing global risks, according to the World Economic Forum’s 2019 Global Risks Report.
The report incorporates the results of the annual Global Risks Perception Survey, (GRPS), which included responses from approximately 1,000 experts and decision-makers.
For the third consecutive year, environment-related risks dominate the GRPS results, accounting for the top three risks by likelihood (extreme weather events, failure of climate-change mitigation and adaptation, and major natural disasters) and four of the top five risks by impact (failure of climate-change mitigation and adaptation, extreme weather events, water crises, major natural disasters).
The report notes: “Of all risks, it is in relation to the environment that the world is most clearly sleepwalking into catastrophe.”
According to the report, the world’s ability to collaborate and provide collective action in the face of major crises has reached crisis levels, with worsening international relations obstructing action across a growing array of serious challenges.
It also revealed that in 2019, rising geopolitical and geo-economic tensions are “the most urgent risk”, as 90 percent of experts predicting further economic confrontation between major powers in 2019.
Accentuating the issues surrounding the potential for international cooperation in 2019 is a darkening economic outlook, which is in part caused by geopolitical tensions.
The report also emphasises the danger of rapidly evolving cyber and technological threats, with a large majority of GRPS respondents expecting increased risks of cyber-attacks leading to theft of money and data (82 percent) and disruption of operations (80 percent) in 2019.
Alison Martin, group chief risk officer, Zurich Insurance Group, said following on from the historic wildfires, continued heavy flooding and increased greenhouse gas emissions in 2018, “it is no surprise that in 2019, environmental risks once again dominate the list of major concern”.
Martin continued: “So, too, does the growing likelihood of environmental policy failure or a lack of timely policy implementation.”
“To effectively respond to climate change requires a significant increase in infrastructure to adapt to this new environment and transition to a low-carbon economy.”
Børge Brende, president of the World Economic Forum, highlighted the need for improved international relations.
Brende commented: “With global trade and economic growth at risk in 2019, there is a more urgent need than ever to renew the architecture of international cooperation.”
“We simply do not have the gunpowder to deal with the kind of slowdown that current dynamics might lead us towards.”
“What we need now is coordinated, concerted action to sustain growth and to tackle the grave threats facing our world today.”