WEF Global Risk Report released

The Global Risk 2015 report has just been released by the World Economic Forum. This report was compiled by some of the world’s leading financial and academic institutions including Zurich. Zurich's contribution to the content of this report is one of the many ways we are continually aiming to help our customers to understand and reduce their exposure to risk.

Taking a 10-year outlook, this year’s report assesses 28 risks that are global in nature and have the potential to cause significant negative impact across entire countries and industries if they take place. Each risk considered in this report - and measured in terms of their likelihood and potential impact - holds the potential for failure on a global scale.

Furthermore, it is their interconnected nature that makes their negative implications so pronounced as together they can have an augmented effect. Zurich believes that in today’s interconnected world, caring for business means considering everything that could affect it. Effective risk management needs to take interdependencies between risks into account. To do this, a truly holistic risk management approach is required.

900 global experts who contributed to the Global Risks 2015 report see that - for the first time in 10 years - economic risks are not topping the list of global risks. Instead, 2015 stands out as a year when geopolitical risks, having been largely absent from the landscape of leading risks for the past half-decade, returns to the fore.

With geopolitics increasingly influencing the global economy, these risks account for three of the five most likely, and two of the most potentially impactful, risks in 2015. These are interstate conflict with regional consequences, weapons of mass destruction and terrorist attacks.

The risk landscape in 2015 also shows that there remains concern over the world’s ability to solve its most pressing societal issues, as societies are under threat from economic, environmental and geopolitical risks. Indeed, the societal risk accounts for the top two potentially impactful risks.

Global Risks 2015 further examines the interconnections between risks, as well as how they interplay with trends shaping the short- to medium-term risk landscape. It also offers analysis of three specific cases which emerge from the interconnections maps: the interplay between geopolitics and economics, the risks related to rapid and unplanned urbanization in developing countries and one on emerging technologies.