Biggest Risks in 2019 for the World

“Of all risks, it is in relation to the environment that the world is most clearly sleepwalking into catastrophe,” so says the World Economic Forum’s Global Risks Report.

The report offers a rare perspective on the threats facing our world, by not only regarding the most probable risks, but also those that would have a sizeable impact.

Image: World Economic Forum

The report says: “The results of climate inaction are becoming increasingly clear. The accelerating pace of biodiversity loss is a particular concern.”

Other big concerns in terms of likelihood and impact include, increased technological dependence, along with risks that stem from the global economy, society, and geopolitically.

Image: World Economic Forum

Cyber-attacks feature in both top 10s, at number five for likelihood and seven for impact, while data fraud is at number four for likelihood, reflecting an overall trend as technology shapes the risk landscape.

The vast majority of respondents (82%) predicted the risk of cyber-attacks leading to theft of money and data to increase in 2019, with 80% believing they would disrupt operations. The survey says this “reflects how new instabilities are being caused by the deepening integration of digital technologies into every aspect of life”.

The report also warns of the macroeconomic risks we face as we head into the third month of 2019.

The majority of respondents expect increasing risks this year, related to “economic confrontations between major powers” (91%) and “erosion of multilateral trading rules and agreements” (88%).

Financial market volatility and slowing global growth through 2018 are highlighted by the authors and by the latest International Monetary Fund forecasts.

As a result, the possibility of an asset bubble in a major economy is 10th most likely.

These risks are interconnected and each has the potential to affect the others. Consider for example the loss of biodiversity in the human food chain. This affects health and socioeconomic development, with implications for areas from productivity to regional security.

Image: World Economic Forum

The Global Risks Report 2019 was released ahead of the World Economic Forum’s Annual Meeting in Davos and surveyed leaders on potential dangers facing the world in the coming year. The report compels governments and organizations to address the impact of specific threats and make preparations to curb potential disasters should they occur.

* Reference: “ These are the biggest risks facing our world in 2019” by the World Economic Forum.