The study conducted by the World Economic Forum (WEF) also flagged that the world is not ready for the knock on effect of far reaching environmental, societal and technological risks, but a “green recovery” and more resilient, cohesive, inclusive and equal societies can emerge if leaders act now. It taps into views of nearly 350 senior risk professionals who were asked to look at the next 18 months and rank their biggest concerns in terms of likelihood and impact for the world and for business.The immediate economic fallout from COVID 19 dominates companies’ risks perceptions and these range from a prolonged recession to the weakening fiscal position of major economies, tighter restrictions on the cross border movement of goods and people, and the collapse of a major emerging market.The report also calls on leaders to act now against an avalanche of future systemic shocks such as the climate crisis, geopolitical turbulence, rising inequality, strains on people’s mental health, gaps in technology governance and health systems under continued pressure.”These longer term risks will have serious and far reaching implications for societies, the environment and the governance of breakthrough technologies,” the WEF said.As per the study, two thirds of respondents identified a “prolonged global recession” as a top concern for business. Besides, one half identified bankruptcies and industry consolidation, failure of industries to recover and a disruption of supply chains as crucial worries.With the accelerated digitisation of the economy in the midst of the pandemic, cyber attacks and data fraud are also major threats, according to one half of the respondents, while breakdown of IT infrastructure and networks is also a top concern.Geopolitical disruptions and tighter restrictions on the movement of people and goods are also high on the worry list.A second report from WEF, ‘Challenges and Opportunities in the Post COVID 19 World’, which was also published on Tuesday, draws on experiences and insights of thought leaders, scientists and researchers to outline emerging opportunities to build a more prosperous, equitable and sustainable world.WEF’s Managing Director Saadia Zahidi said the COVID 19 crisis has devastated lives and livelihoods while triggering an economic crisis with far reaching implications and revealing the inadequacies of the past.”As well as managing the immediate impact of the pandemic, leaders must work with each other and with all sectors of society to tackle emerging known risks and build resilience against the unknown.
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