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Organizations must connect global risks to strategy

January 16, 2022

The new World Economic Forum’s Global Risks Report is dominated by environmental issues. Climate action failure, extreme weather events, biodiversity loss and ecosystem collapse were considered the top three of the top 10 global risks by severity over the next 10 years. Around 1,000 global leaders in business, government and civil society took part in the survey.

In the 17th edition, the document encourages leaders to think outside the quarterly reporting cycle and create policies that “connect risk to strategy”. Risk analysis shapes decisions, creates forecasts and reveals the policy gaps requiring action. 

Beyond environmental concerns, other top risks include livelihood crises, the erosion of social cohesion, and an uneven pandemic recovery. The report warns that the risks of growing social gaps will continue to be exacerbated by the pandemic, and experts caution that the global economic recovery will likely be uneven and potentially volatile over the coming years.

“The global risks identified in this year’s Global Risks Report demonstrate the need for organizational resilience and learning from the challenges of the past two years. Businesses that manage risk well will thrive in a changing risk landscape and create trust with their stakeholders”, wrote Carolina Klint, Risk Management Leader, Europe, Marsh & McLennan Companies, for the World Economic Forum.

Saadia Zahidi, Managing Director and Head of the Centre for the New Society and Economy at the World Economic Forum, calls for leaders to “overcome our divisions and come together to face longterm global risks”.


Source: World Economic Forum