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Global Risk Report 2022: Highlights

Published on Thursday, May 05, 2022
  • The Global Risks Report is released by World Economic Forum. This Report is the 1the Edition that tracks the global risks which threaten the world in present and in near future. This report is prepared using the “Global Risk Perception Survey (GRPS)” information.
  • This report is prepared by World Economic Forum along with Marsh McLennan, SK Group, and Zurich Insurance Group. It examines risks across five categories: economic, environmental, geopolitical, societal, and technological. Every year the report also analyses key risks to explore, warning signs to be taken into consideration, or potential blind spots in risk perceptions of 124 economies throughout the world.
  • The main purpose of this report is to catalysing a new economy and society, accelerating climate action for people and the planet, leveraging Fourth Industrial Revolution technologies, stewarding industry transformations, and enhancing global and regional cooperation. These platforms and their stakeholders use the insights from this report to shape their agendas for tackling the world’s greatest challenges and embedding greater resilience and cooperation.

Global Risk Perception Survey 2020 -2021 Includes

  1. COVID 19 Hindsight – Social Cohesion erosion, livelihood crises, and mental health deterioration
  2. Looming Debt crises - 97% public debt-to-GDP in 2020.
  3. The planet cannot wait – Extreme weather and Climate Action Failure
  4. Connectivity Blind spots – Digital inequality
  5. Growing rivalries – Geo-economics confrontations

Finding  and Keypoints - World

Top 5 Bigger Risks Identified in the Report

  1. Climate Action Failure – 42.1%
  2. Extreme Weather – 32.4%
  3. Biodiversity loss – 27.0%
  4. Natural resource erosion – 23.0%
  5. Human Environmental Damage – 21.7%

Top Shorter Term Global Concerns (0-2 Years)

  1. Extreme Weather -31.1%
  2. Livelihood crisis – 30.4%
  3. Climate Action Failure – 27.5%
  4. Social Cohesion Erosion – 27.5%
  5. Infectious disease – 26.4%

Top 5 Medium Term Global Concerns (2-5 Years)

  1. Climate Action Failure – 35.7%
  2. Extreme Weather – 34.0%
  3. Social Cohesion Erosion – 23.0%
  4. Livelihood crisis – 20.1%
  5. Debt crisis – 19.0%
  • Five of the top 10 global risks are all climate or environment-related issues.
  • Only one in six are optimistic and only one in ten believe the global recovery will accelerate.

Top Risks That Had Worsened The Most Since The Start Of The Covid-19 Crisis

  1. Social cohesion erosion – 27.8%
  2. Livelihood crises – 25.5%
  3. Climate action failure – 25.4%
  4. Mental health deterioration – 23.0%
  5. Extreme weather – 22.7%

Climate Action Failure:

  • Temperature of the world is predicted to increase at 2.4 Degree Celsius.
  • With good environmental efforts and net-zero emissions, it can be optimized to 1.8 Degree Celsius.

Cop 26 Pointed Highligted In This Report About India:

  • India pledged to reach net-zero emissions by 2070 and announced a target of 50% renewable energy by 2030. All the largest emitters have now agreed to start phasing out fossil fuels.

How To Achieve This Target Of Net Zero Emission?

  1. Coal energy must be replaced with Clean Energy.
  2. Forest cover need to be increased by 91%.
  • 197 countries aligned on the Glasgow Climate Pact.

Refreshing Resilience - Covid-19 Impact

  • 6% Vaccination rate in poorest 52 countries
  • 5.4 million deaths from COVID-19 at the start of 2022.
  • 282 million confirmed cases from COVID-19 since 2019.
  • 41 million deaths every year in low and middle-income countries due to non-communicable diseases.
  • 67.2% COVID-19 vaccinated population in high-income countries.
  • 2.1 million maximum estimated excess death in Africa by 2021.

Risk To Economic Recovery

  • Global economic growth is expected to reach 5.9% in 2021 and slow to 4.9% in 2022.
  • By 2024, the global economy is projected to be 2.3% smaller than it would have been without the pandemic.
  • Government debt globally increased by 13 percentage points, to 97% of GDP, in 2020.
  • The US Dollar Index had risen 7% since the start of 2021 due to inflation accelerated in many countries due to pandemic disruption
  • 51 million increase in extreme poverty projections as a result of pandemic-related disruptions to supply chains combined with resurgent consumer demand and higher commodity prices.

Cyber Vulnerabilities

  • 435% increase in ransomware in 2020.
  • 3 million gaps or vacancy for cyber professionals in the world level.
  • E-commerce sector has an estimated value of USD 800 billion with cyber threats.
  • COVID-19 has provided work from home with third-party platform and has contributed more to the hacking of important information.
  • Using Artificial Intelligence, Internet of Things, Edge computing, Blockchain Technology is also responsible for cyber vulnerabilities, mainly due to lack of infrastructure.
  • 95% of cybersecurity issues are traced to human error.

Barriers To Migration

  • 200 million projected climate refugees will be by 2050.
  • 9% decline in Foreign Direct Investments (FDI) to low-income countries in 2021.
  • 4800 estimated migrants perished or missing in 2021.

Increased Competitition In Space

  • Private players are allowed to enter the space causing collision, congestion, debris (wastes), and Geopolitical threats in low earth orbit (2000 km altitude) and medium earth orbit (35000 km altitude – Geostationary Earth Orbit).
  • National prestige causes commercial, scientific, military, and geopolitical pressure in space.
  • 11,000 satellites are already in our outer space and 70,000+ satellites are planned to enter in upcoming years.
  • 5 number of new government-developed space stations by 2030.
  • 28 nations with domestic space regulation
  • 1 million estimated number of debris pieces in 1 centimeter and large.
  • 84% of experts are worried or concerned about the world.

Disorderly Climate Transition

  • 1.8 Degree Celsius Temperature rise is the most optimistic scenario of global warming after COP26.
  • USD 130 trillion have been committed from private capital to carbon neutrality.
  • 40 million jobs created through re-skilling in the renewables sector by 2050.

Key Findings For India

Top 5 Risks Identified By The Executive Opinion Survey

  1. Fracture of interstate relations
  2. Debt crises in large economies
  3. Widespread youth disillusionment
  4. Failure of technology governance
  5. Digital inequality
These 5 risks will affect India in the next 10 years
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