DESCRIPTION OF GLOBAL RISKS 2022

Sources: Global Risks Report 2022

ECONOMIC

1. Asset bubble bursts in large economies: Prices for housing, investment funds, shares and other assets in a large economy increasingly disconnect from the real economy.
2. Collapse of a systematically important industry: Collapse of a systematically important global industry or firm with an impact on the global economy, financial markets and/or society.
3. Debt crises in large economies: Corporate and/or public finances overwhelmed to debt accumulation and/or debt servicing in large economies, resulting in mass bankruptcies, defaults, insolvency, liquidity crises or sovereign debt crises.
4. Failure to stabilize price trajectories: Inability to control an unmanageable increase (inflation) or decrease (deflation) in the general price level of goods and services.
5. Proliferation of illicit economic activity: Global proliferation of informal and/or illegal activities that undermine economic advancement and growth: counterfeiting, illicit financial flows, illicit trade, tax evasion, human trafficking, organized crime etc.
6. Prolonged economic stagnation: Near-zero or slow global growth lasting for many years.
7. Severe commodity shocks: Abrupt shocks to the supply and demand of systematically important commodities at a global scale that strain corporate, public and/or household budgets: chemicals, emissions, energy, foods, metals, minerals etc.

ENVIRONMENTAL

1. Biodiversity loss and ecosystem collapse: Irreversible consequences for the environment, humankind and economic activity, and a permanent destruction of natural capital, as a result of species extinction and/or reduction.
2. Climate action failure: Failure of governments and businesses to enforce, enact or invest in effective climate-change adaptation and mitigation measures, preserve ecosystems, protect populations and transition to a carbon-neutral economy.
3. Extreme weather events: Loss of human life, damage to ecosystems, destruction of property and/or financial loss at a global scale as a result of extreme weather events: cold fronts, fires, floods, heat waves, windstorms etc.
4. Human-made environmental damage: Loss of human life, financial loss and/or damage to ecosystems as a result of human activity and/or failure to co-exist with animal ecosystems: deregulation of protected areas, industrial accidents, oil spills, radioactive contamination, wildlife trade etc.
5. Major geophysical disasters: Loss of human life, financial loss and/or damage to ecosystems as a result of geophysical disasters: earthquakes, landslides, geomagnetic storms, tsunamis, volcanic activity etc.
6. Natural resource crises: Chemical, food, mineral, water or other natural resources crises at a global scale as a result of human overexploitation and/or mismanagement of critical natural resources.

GEOPOLITICAL

1. Collapse of a multilateral institution: Dissolution of a global multilateral institution established to resolve economic, environmental, geopolitical and/or humanitarian crises with regional or global implications: border disputes, environmental commitments, migration crises, health emergencies, trade disputes etc.
2. Fracture of interstate relations: Economic, political and/or technological rivalries between geopolitical powers resulting in a fracture of bilateral relations and/or growing tensions.
3. Geoeconomic confrontations: Deployment of economic levers, including investment controls, trade controls, non-tariff barriers and/or currency measures, by global or regional powers to decouple economic interactions between nations and consolidate spheres of influence.
4. Geopolitical contestation of strategic resources: Concentration, exploitation and/or mobility restriction by a state of goods, knowledge, services or technology critical to human development with the intent of gaining geopolitical advantage.
5. Interstate conflict: Belligerent bilateral or multilateral conflict between states with global consequences: biological, chemical, cyber and/or physical attacks, military interventions, proxy wars etc.
6. State collapse: Collapse of a state with global geopolitical importance as a result of internal conflict, breakdown of rule of law, erosion of institutions, military coup, regional or global instability.
7. Terrorist attacks: Large-scale, scattered or isolated terrorist attacks carried out by individuals or non-state groups with ideological, political or religious goals, resulting in a loss of life, severe injury and/or material damage.
8. Weapons of mass destruction: Deployment of biological, chemical, cyber, nuclear or radiological weapons, resulting in loss of life, destruction and/or international crises.

SOCIETAL

1. Collapse or lack of social security systems: Non-existence or widespread bankruptcy of social security systems and/or erosion of social security system benefits, disability, elderly, family, injury, maternity, medical care, sickness, survivor, unemployment etc.
2. Employment and livelihood crises: Structural deterioration of work prospects and/or standards for the working-age population: unemployment, underemployment, lower wages, fragile contracts, erosion of worker rights etc.
3. Erosion of social cohesion: Loss of social capital and a fracture of social networks negatively impacting social stability, individual well-being and economic productivity as a result of persistent public anger, distrust, divisiveness, lack of empathy, marginalization of minorities, political polarization etc.
4. Failure of public infrastructure: Unequitable and/or insufficient public infrastructure and services as a result of mismanaged urban sprawl, poor planning and/or under-investment, negatively impacting economic advancement, education, housing, public health, social inclusion and the environment.
5. Infectious diseases: Massive and rapid spread of viruses, parasites, fungi, bacteria that cause an uncontrolled contagion of infectious diseases, resulting in an epidemic or pandemic with loss of life and economic disruption.
6. Large-scale involuntary migration: Large-scale involuntary migration induced by climate change, discrimination, lack of economic and advancement opportunities, persecution, natural or human-made disasters, violent conflict etc.
7. Pervasive backlash against science: Censure, denial and/or skepticism towards scientific evidence and the scientific community at a global scale, resulting in a regression or stalling of progress on climate action, human health and/or technological innovation.
8. Pollution-driven harms to human health: Physical and mental health impacts from harmful chemical or other particulates in the air, water or food, which may stem from energy generation, industrial and agricultural practices, waste management failures, natural disasters, human behaviour and other sources.
9. Severe mental health deterioration: Pervasiveness of mental health ailments and/or disorders globally and across multiple demographics, negatively impacting well-being, social cohesion and productivity: anxiety, dementia, depression, loneliness, stress etc.
10. Widespread youth disillusionment: Youth disengagement, lack of confidence and/or loss of trust in existing economic, political and social structures at a global scale, negatively impacting social stability, individual well-being and economic productivity.

TECHNOLOGICAL

1. Adverse outcomes of technological advances: Intended or unintended negative consequences of technological advances on individuals, businesses, ecosystems and/or economies: AI, brain-computer interfaces, biotechnology, geo-engineering, quantum computing etc.
2. Breakdown of critical information infrastructure: Deterioration, saturation or shutdown of physical and digital infrastructure or services as a result of a systemic dependency on cyber networks and/or technology: AI-intensive systems, internet, hand-held devices, public utilities, satellites et.
3. Digital inequality: Fractured and/or unequal access to critical digital networks and technology, between and within countries, as a result of unequal investment capabilities, lack of necessary skills in the workforce, insufficient purchase power, government restrictions and/or cultural differences.
4. Digital power concentration: Concentration of critical digital assets, capabilities and/or knowledge by a reduced number of individuals, businesses or states, resulting in discretionary pricing mechanisms, lack of impartial oversight, unequal private and/or public access etc.
5. Failure of cybersecurity measures: Business, government and household cybersecurity infrastructure and/or measures are outstripped or rendered obsolete by increasing sophisticated and frequent cyber crimes, resulting in economic disruption, financial loss, geopolitical tensions or social instability.
6. Failure of technology governance: Lack of globally accepted frameworks, institutions or regulations for the use of critical digital networks and technology, as a result of different states or group of states adopting incompatible digital infrastructure, protocols and/or standards