BSR Insight | Top Global Risks of the Next Decade
According to the World Economic Forum's "Global Risks 2011" report—which analyzes the global risk landscape in the coming decade—economic disparity and global governance failures are the two most significant risks given their high degrees of impact and interconnectedness. The report also identifies three main clusters of risks: the "macroeconomic imbalances" nexus (currency volatility, fiscal crises, and asset price collapse); the "illegal economy" nexus (state fragility, illicit trade, organized crime, and corruption); and the "water-food-energy" nexus (rising global population and resource shortages). Additionally, the report includes a series of risk-response strategies that can help all stakeholders take advantage of opportunities for innovation that emerge from risk mitigation.
The graphic below illustrates the perceived impact (in US$ billions) and likelihood of risks occurring in the next 10 years. The data reveals that climate change tops this list, followed by fiscal crises, economy disparity, global governance failures, and extreme weather events.
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