About a week or so before the Davos gathering, the World Economic Forum release their global risk report and this year like the decade behind us, the community of 750 risk management experts didn't disappoint.
Typically the content of this risk report is shaped by prevailing trends that have niggled at the global risk community over the past twelve months; be those trends contagions, cyber risk or systemic banking failures.
This year the risk management focus is Vox Populi Risk.
World Economic Forum | Global Risks Report 2017
Vox Populi Risk is a term coined by Citigroup political analyst Tina Fordham which describes "traditional geopolitical risks and newer socioeconomic risks like income inequality threaten to intersect in an environment where global growth is stagnating" | Bloomberg Article [LINK]. Translated from Latin "Vox Populi" is the voice of the people and in 2016 the people certainly Tumped out on Brexit with ramifications that are truly going to be difficult to interpret.
The issues summarised in the 2017 Global Risk report are quite staggering:
1. Economic Growth and Reform ~ within two years from the beginning of the Global Financial Crisis inequality grew by 30%.
2. Rebuilding Communities ~ Decades of Rapid Social and Economic Change have widened generational gaps, amplified issues of national identity and brought cultural values into conflict.
3. Technological Disruption has lead 86% of all job losses because of automation. Half of all global jobs are at risk.
4. Strengthening Global Cooperation as an outcome of general loss of faith in collective security mechanisms.
5. Climate Change ~ The last sixteen years were the warmest on record Emissions must be reduced by 40% in the next thirty years.
That pretty much sums up the World Economic Risk Report with its Economic, Social and Politically interlinked risks becoming the highlight for the next decade and this year, these guys seem to be spot on with their comprehensive risk assessment.