The World Economic Forum, a non-governmental, not-for-profit, international organization, publishes its annual report on the findings of critical risks that the world is facing. This report, called the Global Risk Report, outlines the top risks humanity faces and can impact our short-term and long-term future.
Each year, the report is created by taking inputs and opinions of leaders across various disciplines, organizations, geographies, and sectors, helping to develop a thorough understanding of the imminent threats facing humanity. Are you wondering about the key risks outlined in the 2022 Global Risk Report? If yes, let's dive in to identify the key findings of this report.
Highlights of Global Risk Report 2022
The Global Risk Report 2022 conducted studies between May 2021 and September 2021, assessing the world's risks. Their analysis is as follows:
Threat of COVID-19
The report has seen the pandemic stretch into its second year, and many countries had to modify or deal with a heightened threat of the new COVID-19 variants. The report found two primary reasons to understand a nation's effective handling of the COVID-19 pandemic:
- The openness of the government to adopt new strategies and deal with the pandemic as per changing circumstances
- The ability of the government to maintain public trust in this crisis-like situation
Global Economic Outlook
Since the COVID-19 pandemic, the risks to economic growth are still evident, and the report suggests that the global economy may shrink by 2.3% by the year 2024. Furthermore, the figure is estimated to shrink by 5.5% for developing countries, while it is estimated to be 0.9% for developed countries.
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The report also sees a worrisome trend across the globe regarding the effects of human activity on the environment. The report highlights problems associated with the way countries are mitigating climate change and expresses the need for nations across the globe to consider taking steps towards becoming carbon neutral.
Geopolitical & Technological Risks
Since COVID-19, a large part of the workforce has shifted to the digital medium. Working from home or remotely is now a lifestyle, and online learning is quickly gaining pace. This has increased the risks of cyberattacks, ransomware attacks, and other cyber threats. In the longer-term, geopolitical and technological risks could be a significant concern including "geoeconomic confrontations", "geopolitical resource contestation", and "cybersecurity failure".
Key Points For India Mentioned In The Global Risk Report
The Global Risk Report 2022 has highlighted 5 key risk areas for India, that are:
- Fracture of interstate relations
- Debt crises in large economies
- Widespread youth disillusionment
- Failure of technology governance
- Digital inequality
India was also the top sixth country globally. Here, COVID-19 infections were at their peak between January 2020 to January 2022. Thus, in addition to these risk areas, India also needs to focus on maximizing vaccinations, keeping new pandemic or COVID-19 waves in check, and ensuring optimal healthcare infrastructure.
FAQs on Global Risk Report
Q1. What is the meaning of the Global Risk Report?
The Global Risk Report is an annual report which tracks global risk perceptions among risk experts, world leaders, businesses, government, and civil society. In this report, Global Risk is defined as any occurrence that can cause a significant negative impact on nations and industries over up to 10 years.
Q2. Who releases the Global Risk Report?
The Global Risk Report is released by the World Economic Forum (WEF), an international non-governmental organization that is committed to improving the state of the world by engaging political, cultural, business, and economic leaders to understand the impact on global, regional, and industry agendas. It is independent, impartial, and not tied to any special interests.
Q3. Which are the top 10 risks mentioned in the Global Risk Report 2022?
The top 10 risks that will impact the world, as mentioned in the Global Risk Report 2022, are -
- Climate action failure
- Extreme weather
- Biodiversity loss
- Social cohesion erosion
- Livelihood crises
- Infectious diseases
- Human environmental damage
- Natural resource crises
- Debt crises
- Geoeconomic confrontation
Q4. What is the top global risk by impact according to the World Economic Forum in its Global Risks Report of 2021?
The top risk mentioned in the Global Risk Report 2021 is infectious diseases, which have the most pressing and highest risk impact for the next decade. This risk is closely followed by climate action failure, human-led environment damage and risk due to weapons of mass destruction, livelihood crises, debt crises and IT infrastructure breakdown.