With the world facing growing economic instability and political tensions, volatility in geo-economic and geopolitical relations between major economies is likely to result in global upheavals over the next six months, according to a new survey of the World Economic Forum’s Chief Risks Officers (CRO) community.
The community comprises 40 risk professionals from a wide range of multinational companies, covering technology, financial services, healthcare, professional services and industrial manufacturing.
Respondents to the survey identified macroeconomic indicators, pricing and supply disruptions of key raw materials, armed conflicts and regulatory changes as top concerns for organisations.
“Whilst continuing to grapple with rising costs and supply disruptions, organisations are increasingly faced with many ethical and societal risks, which are far more complex to navigate than regulatory compliance alone.”
More than 85 per cent of CROs expect some level of continued volatility and economic and financial conditions within and across major economies.
This mid-year briefing on the global risks landscape is underpinned by consultations and surveys with leading chief risk officers from both the public and private sectors, organised by the Global Risks Initiative within the World Economic Forum’s Centre for the New Economy and Society.
The chief risk officers’ focus on economic risks is in line with gloomy international assessments of the global growth outlook.
Headline rates of inflation have begun to fall, but they continue to shape the economic risk landscape, not least through increases in interest rates that have squeezed demand and pushed up borrowing costs.