World Economic Forum Global Risks 2014
It is time for Davos again and the WEF have just released their latest global risk report. As always, it is an exceptionally well-written and well-thought through report – and I personally feel privileged to have access to research of this quality. This post is not intended to replicate or summarise the report, rather to encourage readership by mentioning a few highlights. Also to suggest some ways that you may use this in your own organisation.
If you were to skim-read the report I would suggest start with the executive summary and then the early section on inter-relatedness of the risks. The strong message coming through is the potential for events in one area to catalyse or reinforce events in other areas – and this is incredibly hard to predict and defend against.
The main chart showing all the risks and their impact and likelihood forms the basis of the research. A copy is shown to the left of this text where the major risks in terms of impact and likelihood are revealed in the top right-hand quadrant.
Later in the report, there are two charts showing differences in perceptions between younger and older respondents;and male and female respondents is fascinating.
A little later the diagram showing the interdependency emphasises the need for a global response to these risks to reduce the potential for the “tragedy of the commons” taking place.
There is much more in the “blue-boxes” as well as some of the clusters of interdependencies that are reviewed in the part 2.
In terms of using this in your own business, I would suggest a getaway for your executive team where these are reviewed and consideration given to the potential impact of the major (high ranked impact-likelihood) risks on your strategy and business. If you are operating in one or a few regions only, you might also consider the more local risks you are facing in conjunction with the global ones. It is particularly important to consider both the opportunities that might be created as well as the downsides.
You can find the report at: WEF Global Risks Report 2014
Contact me at firstname.lastname@example.org to discuss how we might facilitate a strategic risk session with your management team. I promise for an entertaining, interactive and visually powerful event!