Combat governance gaps globally: WEF report
Global Risks 2010, the annual report released by the World Economic Forum has stressed that the need to combat governance gaps globally is greater than ever. This is due to the unprecedented levels of interconnectedness between all areas of risk, the report says.
The report argues that the events of the past year have revealed a fundamental need to change thinking on global risks and how they are managed. It argues that this can only be addressed by an overhaul of current values and behaviours by decision-makers to improve coordination and supervision.
Robert Greenhill, Managing Director and Chief Business Officer at the World Economic Forum, said Global Risks 2010 underlines the challenges ahead: “The findings of the report confirm that we must face up to the challenges created by these unprecedented levels of interconnectedness between risks. The financial crisis and the ensuing recession have created a more vulnerable environment where unaddressed risks may become tomorrow’s crises.”
A massive US$ 35 trillion of infrastructure investment is required over the next 20 years, according to the World Bank. “This is particularly acute for agriculture and food security,” said Swiss Re’s Chief Risk Officer Raj Singh. “We need a vast increase in food production to feed the growing world population, and a billion people are already undernourished. Billions of dollars need to be spent on water provision, energy supply, transport and climate change adaptation measures. Governments must work together with the private sector to make it happen. Insurers can provide risk management tools that create greater financial stability for farmers and the agriculture industry.”
The Global Risks report is published yearly ahead of the World Economic Forum Annual Meeting in Davos-Klosters, Switzerland, and is produced in partnership with Citigroup, Marsh & McLennan Companies (MMC), Swiss Re, the Wharton School Risk Center and Zurich Financial Services. The result of year-long consultations with experts from business, academia and policy-making, Global Risks 2010 marks the fifth edition of the report, coinciding with the 40th anniversary of the Forum.