Risk Report 2014 | World Economic Forum

Risk Report 2014 | World Economic Forum

The World Economic Forum brings its latest study on the possible risk that the world will see in the future as well as the likelihood and impact of these risks. We say the study highlights how global risks are not only interconnected but also how to have systemic impacts. To manage global risks effectively and increase their impact resistance, better efforts to understand, measure and predict the evolution of the interdependencies between the identified risks, complementing traditional risk management tools with new concepts designed for environments are needed with increasing uncertainty.

They measure 31 global risks identified within the following overarching elements:

Economic
Environmental
Geopolitics
Societal
Technological

Also this year, they especially focus on the relationship between what they call the three constellations of global risk and what their systemic impacts are. The constellations are focused on the following:

Youth
Cyberspace
Geopolitics

Risk Analysis

Risk Analysis

The identified risks are included in the following items of greatest concern:

The fiscal crisis in major economies.
The high structural unemployment and underemployment.
The water crisis.
The growing income disparity.
The lack of mitigating climate change and poor environmental adaptation of economies.
The highest incidence of extreme weather events such as floods, storms and fires.
The failure of global governance.
Food crises.
Failures of financial regulatory mechanisms.
Continuous and profound political and social instability.

Overall, we summarize:

The risks considered high impact and high probability are mostly environmental and economic. Risks perceived to be interconnected with other risks are macroeconomic, fiscal crises for example, structural unemployment and underemployment. Among the trends that must be controlled are the decline of trust in institutions, lack of leadership, the persistence of gender inequalities and poor data management. An interesting study that shed light on where we should prepare for the future. Better prepare to address these risks before suffering for being unprepared.

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