A top 10 list risks globally included in the Global Risks Report 2023 list World Economic Forum in Davos. As everything shows people are more frightened by a high cost of living followed by extreme weather events and the failure to effectively address the climate crisis.
Analyzing the report, Vicki Owen, Schroders’ content strategy and sustainability expert, estimates that cost of living will top the list two years down the line, followed by natural disasters, extreme weather events, and geoeconomics. confrontations.
Five of the 10 risks are environmental, three social, one technological, and one geopolitical.
The 10 main risks over two years
- High cost of living
- Natural disasters and extremes weather phenomenon
- Geoeconomic confrontations
- Failure to address the climate crisis
- Erosion of social cohesion and social polarization
- Manifestation of large-scale environmental problems
- Failure to adapt to climate change
- Widespread crime and lack of cyber security
- Depletion of natural reimgs
- Large scale involuntary migration
The top 10 risks in 10 years
- Failure to address the climate crisis
- Failure to adapt to climate change
- Natural disasters and extreme weather events
- Biodiversity loss and ecosystem collapse
- Large scale involuntary migration
- Depletion of natural reimgs
- Erosion of social cohesion and polarization
- Widespread crime and lack of cyber security
- Geoeconomic confrontations
- Manifestation of large-scale environmental problems
What does this report mean for investors?
At the end of 2022, the financial and investment teams of Schroders published, as reported by the Athens News Agency, five key macroeconomic trends, which they consider to be of decisive importance for the coming years, during the transition to a new economic regime.
As Azad Zangana, Senior European Economist and Strategic Analyst at Schroders and Johanna Kyrklund, Head of Group Investment Office and Head of Investments at Schroders, report in the article Regime shift: investing into the new era: “As this economic cycle ends, we will not we should expect to see a repeat of the patterns of the previous decade. A new regime in market politics and behavior is coming that investors must understand if they are to spot opportunities and secure their portfolios.”
Among other things, Johanna Kyrklund refers to changes in the way fixed income will be treated and how assets will be valued, increasing divergence in interest rate cycles, increased borrowing costs and lower price indices. The fact that the rising cost of living and inadequate management of the climate crisis are ranked as the most serious global risks for the coming years does not surprise Andy Howard, Global Head of Sustainable Investments at Schroders.
He himself, in Outlook 2023, Sustainability: five key trends to watch, points out: “While the planet is recovering from the Covid-19 pandemic crisis, its effects on economies, societies and the environment are becoming increasingly apparent. Looking to the future, the impact of the pandemic seems to have limited the ability of governments to support societies. Businesses are expected to play an essential role in addressing critical issues – from climate challenges and threats to biodiversity – to life-threatening crises.” Finally, Samuel Thomas, Sustainable Investment Analyst in Schroders’ Sustainable Investment Research Group, comments on both the rise in cybercrime and lack of security, which are ranked 8th among the world’s top risks over two years and a decade.
“Cyber attacks are an emerging threat to business and society around the world. The investment community recognizes that these attacks are a real threat to businesses, as they become more and more noticeable every year. In 2022, the average cost of a data breach increased by 3% to $4.35 million,” he adds.
Source: News Beast
Bruce Belcher is a seasoned author with over 5 years of experience in world news. He writes for online news websites and provides in-depth analysis on the world stock market. Bruce is known for his insightful perspectives and commitment to keeping the public informed.
