In an increasingly fractured global landscape, escalating geopolitical, environmental, societal and technological challenges threaten. That’s according to the 20th edition of the Global Risks Report 2025, by the World Economic Forum (WEF), ahead of its annual meeting for the wealthy and powerful in Davos, Switzerland, next week. Next Wednesday will see a session on the report, moderated by The Economist’s Zanny Minton Beddoes.
Perception
As for perception of risks, a majority of executive respondents asked by the WEF (52 per cent) anticipate an unsettled global outlook over the short term (next two years), a similar proportion to last year. That reflects those experts’ skepticism that ‘societal mechanisms and governing institutions are capable of navigating and mending the fragility’ due to risks, according to the report. Also aired is unease about global economic relations. Inequality (whether of wealth, or income) is perceived as the most central risk of all, playing a significant role in both triggering and being influenced by other risks. As for those executives surveyed in the UK, the one to five order of risks was: economic downturn (recession, stagnation) then inflation; labour and/or talent shortage; adverse outcomes of artificial intelligence technologies; and involuntary migration.
Ranked
State-based armed conflict is now ranked as the number one risk; then comes extreme weather events. The authors wonder if countries might spend more on their defence, due to what they term ‘a growing vacuum in ensuring global stability at a multilateral level’. That may lead governments increasingly to take national security matters into their own hands, coordinating their defence ‘only with select allied countries, or making unilateral military decisions’.
Cyber
A majority of Chief Risk Officers (CROs) expressed concern about the impact of cyber risk and criminal activity (money laundering, cybercrime) severely impacting their
businesses. “The rising likelihood of threat actor activity and more sophisticated technological disruption were noted as particular concerns,” the report stated.
What they say
Mirek Dušek, Managing Director, World Economic Forum, said: “Rising geopolitical tensions and a fracturing of trust are driving the global risk landscape. In this complex and dynamic context, leaders have a choice: to find ways to foster collaboration and resilience, or face compounding vulnerabilities.”
To view the report, visit https://www.weforum.org/publications/global-risks-report-2025/.
