Clear and present dangers Businesses fear inaction over worsening climate change, cyber threats and other risks could derail their pandemic recovery By Bernice Han
F
ebruary 1 heralded the start of the Year of the Tiger, an animal symbolising strength and bravery. Australian business leaders – like their counterparts around the world – are going to need plenty of both in 2022. With the pandemic entering its third year, the World Economic Forum’s (WEF) Global Risks Report finds the mood overwhelmingly downcast as the coronavirus shows no sign of going away. The covid health crisis and its long-term side effects on the global economy are not the only issues preying on the minds of C-suite executives, according to the annual WEF report produced in collaboration with Marsh McLennan, Zurich and other partners. Business leaders have told the researchers that damaging extreme weather events, climate change inaction, worsening cyber crime and other pressing problems pose grave threats to the world economy. Released ahead of the virtual Davos summit in January, the report’s Global Risks Perception Survey brings together the views of more than 12,000 respondents.
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February/March 2022
Asked for their outlook for the world over the next three years, only 10.7% said they believe economic recovery will accelerate during the period. About 23% say they are “worried”, 61.2% describe themselves as “concerned” and only 15.8% feel “positive” or “optimistic”. In Australia, business leaders say their top shortterm risk in the next two years is cyber security measures failing. This is followed by extreme weather events, climate action failure, infectious diseases and debt crises in large economies. Globally, the top short-term risks over the next two years are extreme weather, livelihood crises, climate action failure, social cohesion erosion, infectious diseases, mental health deterioration, cyber security failure, debt crises, digital inequality and an asset bubble burst. Scott Leney, the Head of Risk Management Marsh Asia & Pacific, tells Insurance News the “sombre” mood is “understandable given the disruption that business and society has encountered over the last two years and the ongoing fatigue about the pandemic’s future path”. He says the next two years will be “primarily about
