Global Risks Report: the big issues facing leaders at Davos 2024
Jan 10, 2024
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The podcast discusses the big global challenges leaders will be discussing at Davos 2024, including the impact of artificial intelligence, disinformation, and cyberinsecurity. It explores the interconnected and complex global risks, the role of international financial institutions, the lack of action on climate tipping points, the challenges of high-stakes armed conflict, and global supply chain disruptions.
The Global Risks Report highlights the need for cross-country collaboration to address interconnected global risks such as cyber insecurity and disinformation.
The report emphasizes the importance of sustainable public finances and collective efforts to tackle economic downturns and societal polarization.
Deep dives
Global Risks Report highlights the importance of public-private partnerships
The annual Global Risks Report from the World Economic Forum identifies the need for cross-country collaboration and meaningful conversations to address global systemic risks. The report emphasizes the interconnectedness and complexity of these risks and the need for diverse stakeholders to work together. It highlights the rising importance of cyber insecurity, societal polarization, extreme weather events, and misinformation/disinformation as key short-term risks. Artificial intelligence (AI) is also recognized as a potential source of both risks and opportunities. The report urges businesses to assess their digital and cybersecurity footprints and enhance supply chain resilience. It also emphasizes the necessity of building trust with workforces and stakeholders amidst growing mistrust in society.
The evolving landscape of global risks and the need for adaptability
The changing landscape of global risks, including climate change, demographic changes, technology, and geopolitics, presents new challenges in risk analysis and mitigation. The interconnected nature of these risks creates complexities and requires long-term strategies. The report highlights critical changes to earth systems due to climate change and the potential adverse outcomes of AI technologies and lack of economic opportunity as emerging global risks. The risk of disinformation and misinformation, fueled by AI and technology, is also a significant concern for upcoming elections. Organizations and leaders are advised to be aware of the risks posed by AI, including cybersecurity breaches, strategic failures, and workforce impact. They are encouraged to embrace a learning mindset, stay updated on technological developments, and prioritize risk resilience and strategy.
The ongoing challenges of debt distress and economic downturns
The Global Risks Report addresses the structural challenge of debt distress and overspending by governments worldwide, pointing out the need for sustainable public finances. The report emphasizes the risks associated with economic downturns and societal polarization, highlighting the impact of loss aversion and defensive behaviors on wealth reduction. It calls for a renewed focus on the common good and collective efforts from societies to tackle these challenges. The report also emphasizes the need for international financial institutions to assist vulnerable economies and urges societies to accept the necessary steps for sustainability. It stresses the importance of acknowledging and mitigating risks, promoting trust, and fostering collaboration.
Navigating supply chain disruptions and addressing geopolitical risks
The report recognizes the dual risks faced by global supply chains due to geopolitics and climate change. It highlights the challenges companies face in moving goods around the world, including disruptions caused by conflicts, cyber attacks, and trade barriers. Mitigation strategies suggested in the report include assessing digital and cybersecurity footprints, identifying supply chain resilience gaps, striking a balance between just-in-case and just-in-time strategies, and building trust with workforces and stakeholders. The importance of nearshoring production and stress testing investment strategies is also emphasized. The report points out the need for societies to prioritize the common good and collaborative efforts amidst increasing geopolitical risks.
As leading figures from government, business, academia and civil society head to Davos for the Annual Meeting 2024, what are the big global challenges they will be discussing?
The World Economic Forum's Global Risks Report sets out the biggest issues over the short and medium terms, based on a survey of more than 1,400 global risks experts, policy-makers and industry leaders.
This year, the impact of artificial intelligence is felt throughout the report, with rising concern about disinformation and cyberinsecurity.
Gayle Markovitz hears from two of the people who put the report together, Carolina Klint, Managing Director at Marsh McLennan, and Peter Giger, Group Chief Risk Officer at Zurich Insurance.