GLOBAL RISKS REPORT 2023

Krishna Kumar Vepakomma
The recently published Global Risks Report 2023 by the World Economic Forum has identified various risks that could significantly impact societies and economies over the next ten years. These risks are primarily the result of underlying geopolitical and economic trends, and if not addressed, could negatively affect climate action, human development, and resilience. The report emphasizes that environmental risks dominate the top 10 risks over the next decade, with ‘biodiversity loss and ecosystem collapse’ being the fastest deteriorating risk. Failure to address this risk could result in severe consequences, including crop failure, water scarcity, and the spread of diseases. In the short term, the ‘cost-of-living crisis’ is the most significant global risk, which is already being felt by many lower-income countries. This risk could potentially turn into a humanitarian crisis, causing social unrest and political instability. The end of an economic era brings risks of stagnation, divergence, and distress. Geopolitical fragmentation could lead to geoeconomic warfare and increase the risk of multi-domain conflicts. Technology could worsen inequalities, and cybersecurity risks will remain constant. Climate efforts face a risky trade-off while nature collapses. The world is facing an urgent challenge over the next decade, with the most severe risks being the ‘failure to mitigate climate change’ and the ‘failure of climate change adaptation.’ Addressing these risks is essential as the potential consequences could be catastrophic. Other significant threats facing the planet include ‘natural disasters and extreme weather events’ and ‘biodiversity loss and ecosystem collapse.’ Unfortunately, the current trajectory of emissions is not conducive to achieving the global ambition of limiting warming to 1.5°C, making it crucial to adopt more sustainable and eco-friendly practices. verall, the Global Risks Report 2023 highlights the urgent need for decision-makers to anticipate and prepare for potential risks. Failure to address these risks could have severe consequences, including worsening social and economic inequality, political instability, and irreversible damage to the environment.