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Global Risk Report

17th January, 2022

Figure 1: No Copyright Infringement Intended

Context

  • Recently, World Economic Forum has released the Global risk report-2022.

About the Report:

  • The Global Risks Report series tracks the perception of global risk by risk experts and global leaders in business, government and civil society.
  • It undertakes risks in five categories:
    • Economic
    • Environmental
    • Geopolitical
    • Societal
    • Technological

Finding of Report

  • "Decrease in social cohesion," "livelihood crisis," and "deterioration of mental health" are three of the five risks that are considered the world's most feared threats over the next two years.
  • This social scar exacerbates the country's policy-making challenges and limits political capital.
  • Environmental risks, especially "extreme weather" and "climate change," appear as the greatest risks in the short-term, medium-term and long-term outlook.
  • In the medium term, economic risks such as the “debt crisis” and the “burst of the asset bubble” are emerging as the government struggles to adjust its fiscal priorities.
  • Long-term geopolitical and technical risks such as "geopolitical conflicts," "disputed geopolitical assets," and "cybersecurity failures" are also concerns.
  • Environmental risks can do the greatest harm to people and the planet, followed by social challenges.
  • Growing geopolitical anxiety in the form of financial hardship, increasing impacts of climate change, and political persecution have forced millions of people out of their homes in search of a better future.

COVID-19

  • New Coronavirus Infection: Pandemics and their economic consequences continue to undermine the country's ability to control viruses and enable sustainable recovery.
  • The biggest challenge for a pandemic is economic stagnation Deterioration of mental health and extreme weather are exacerbated by pandemics.
  • Global economic disparities will widen in 2024, with developing countries 5.5% below pre-pandemic expected GDP growth and developed countries nearly 0.9% above.

Cyber ​​security threats:

  • Cyber ​​security threats are on the rise and are beyond the capacity of society to effectively prevent or respond to them.
  • Attacks on critical infrastructure, misinformation, fraud, and digital security undermine public confidence in digital systems and increase the cost of everyone involved.

Suggestions

  • Strengthening international cooperation on global challenges requires concentration of leadership and public support.
  • It is important that businesses, policy makers and civil society promote comprehensive short-term and long-term climate change measures in line with the goals of the Paris Agreement.