Inter-State disputes hitting GDP growth

Volatile Recovery

- Experts predict uneven recovery over next 3 yrs

- Identify 4 areas of emerging risk: cybersecurity; competition in space; a disorderly climate transition and migration pressures

- Health and economic disruptions compounding social cleavages

The other risks that are haunting the growth of India include debt crises, widespread youth disillusionment, failure of technology governance and digital inequality, says Global Risk report- 2022

Mumbai: Fracture of interstate relations in India is likely to continue to mar the economic growth of India for next couple of years, says a report.

The other risks that are haunting the growth of India include debt crises, widespread youth disillusionment, failure of technology governance and digital inequality, says Global Risk report- 2022, which has been released by World Economic Forum (WEF) in association with Marsh McLennan.

Giving details, a spokesperson told Bizz Buzz: "This year we have the data for the top five risks for each of the 124 economies surveyed by the World Economic Forum's Executive Opinion Survey (EOS) between May and September 2021."

The respondents were presented with the following question: What five risks will pose a critical threat to your country in the next two years? and were asked to select these from a list of 35 risks, with no particular order. 'Risk 1' indicates the most frequently selected risk in each economy.

Climate risks dominate global concerns as the world enters the third year of the pandemic.

As per the report, while the top long-term risks relate to climate, the top shorter-term global concerns include societal divides, livelihood crises and mental health deterioration.

Additionally, most experts believe a global economic recovery will be volatile and uneven over the next three years.

Now in its 17th edition, the report encourages leaders to think outside the quarterly reporting cycle and create policies that manage risks and shape the agenda for the coming years. It explores four areas of emerging risk: cybersecurity; competition in space; a disorderly climate transition; and migration pressures, each requiring global coordination for successful management.

"Health and economic disruptions are compounding social cleavages. This is creating tensions at a time when collaboration within societies and among the international community will be fundamental to ensure a more even and rapid global recovery. Global leaders must come together and adopt a coordinated multi-stake holder approach to tackle unrelenting global challenges and build resilience ahead of the next crisis," said Saadia Zahidi, Managing Director, World Economic Forum.

Carolina Klint, Risk Management Leader, Continental Europe, Marsh, said: "As companies recover from the pandemic, they are rightly sharpening their focus on organizational resilience and ESG credentials. With cyber threats now growing faster than our ability to eradicate them permanently, it is clear that neither resilience nor governance are possible without credible and sophisticated cyber risk management plans. Similarly, organizations need to start understanding

their space risks, particularly the risk to satellites on which we have become increasingly reliant, given the rise in geopolitical ambitions and tensions."

Peter Giger, Group Chief Risk Officer, Zurich Insurance Group, said: "The climate crisis remains the biggest long-term threat facing humanity. Failure to act on climate change could shrink global GDP by one-sixth and the commitments taken at COP26 are still not enough to

achieve the 1.5 C goal. It is not too late for governments and businesses to act on the risks they face and to drive an innovative, determined and inclusive transition that protects economies and

people."

The report closes with reflections on year two of the Covid-19 pandemic, yielding fresh insights on national-level resilience. The chapter also draws on the World Economic Forum's communities of risk experts – the Chief Risk Officers Community and Global Future Council

on Frontier Risks – to offer practical advice for implementing resilience for organizations.

The Global Risks Report 2022 has been developed with the invaluable support of the World Economic Forum's Global Risks Advisory Board. It also benefits from ongoing collaboration with its Strategic Partners, Marsh McLennan, SK Group and Zurich Insurance Group, and its academic advisers at the Oxford Martin School (University of Oxford), the National University of Singapore and the Wharton Risk Management and Decision Processes Center (University of Pennsylvania).