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rank their biggest concerns in
terms of likelihood and impact and
78% said they expect “economic
confrontations” and “domestic
political polarisation” to rise in 2020.
This would prove catastrophic,
particularly for addressing urgent
challenges like the climate crisis,
biodiversity loss and record species
decline. The report, produced in
partnership with Marsh & McLennan
and Zurich Insurance Group, points
to a need for policy-makers to match
targets for protecting the Earth with
ones for boosting economies – and
for companies to avoid the risks of
potentially disastrous future losses
by adjusting to science-based
targets.
For the first time in the survey’s
10-year outlook, the top five global
risks in terms of likelihood are all
environmental. The report sounds challenges. This signals where Systems-level thinking is required
1
the alarm on:
action by business and policy- to confront looming geopolitical and
1. Extreme weather events with makers is most needed. environmental risks, and threats that
major damage to property, may otherwise fall under the radar.
“The political landscape is polarized, This year’s report focuses explicitly
infrastructure and loss of
sea levels are rising and climate on impacts from rising inequality,
human life.
fires are burning. This is the year gaps in technology governance, and
2. Failure of climate-change when world leaders must work health systems under pressure.
mitigation and adaptation by with all sectors of society to repair
governments and businesses. and reinvigorate our systems of John Drzik, Chairman of Marsh &
McLennan Insights, said: “There is
cooperation, not just for short-term
3. Human-made environmental mounting pressure on companies
benefit but for tackling our deep-
damage and disasters, from investors, regulators,
including environmental rooted risks,” said Borge Brende, customers, and employees to
crime, such as oil spills, and President of the World Economic demonstrate their resilience to rising
radioactive contamination. Forum. climate volatility. Scientific advances
mean that climate risks can now be
4. Major biodiversity loss The Global Risks Report is part of modelled with greater accuracy and
and ecosystem collapse the Global Risks Initiative which incorporated into risk management
(terrestrial or marine) with brings stakeholders together to and business plans. High profile
irreversible consequences for develop sustainable, integrated events, like recent wildfires in
the environment, resulting in solutions to the world’s most Australia and California, are adding
severely depleted resources pressing challenges. pressure on companies to take
for humankind as well as
industries.
Severe threats to our climate account for all of the Global Risks
5. Major natural disasters such
Report’s top long-term risks
as earthquakes, tsunamis,
volcanic eruptions, and
• Significant short-term risks in 2020 are “economic
geomagnetic storms.
confrontations” and “domestic political polarisation”
It adds that unless stakeholders
• Geopolitical turbulence and the retreat from multilateralism
adapt to “today’s epochal power-
threatens everyone’s ability to tackle shared, critical global risks
shift” and geopolitical turbulence
– while still preparing for the future • Without urgent attention to repairing societal divisions
– time will run out to address some and driving sustainable economic growth, leaders cannot
of the most pressing economic, systemically address threats like the climate or biodiversity
environmental and technological crises, the report warns

www.MiddleEast-Business.com 7 year, Issue 26, Mar - May 2020
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