INSIGHT by Aylin Elci, Public Engagement, World Economic Forum
Unemployment is main concern among executives, closely followed by infectious diseases, while fiscal crisis is third as top risks for doing business
Climate risks such as natural catastrophes and biodiversity loss and ecosystem collapse are moving up the list
The findings of Regional Risks for Doing Business 2020 are based on a survey of over 12,000 business leaders from 127 countries; discover live interactive data here
The data is released ahead of the World Economic Forum’s inaugural Jobs Reset Summit (20-23 October) which aims to shape inclusive, fair and sustainable economies, societies and workplaces.
“The employment disruptions caused by the pandemic, rising automation and the transition to greener economies are fundamentally changing labour markets. As we emerge from the crisis, leaders have a remarkable opportunity to create new jobs, support living wages, and reimagine social safety nets to adequately meet the challenges in the labour markets of tomorrow”, says Saadia Zahidi, Managing Director at the World Economic Forum.
“COVID-19 is distracting us from certain long-term risks that will be around long after the current crisis is resolved. But the pandemic is also having the positive effect of leading many to reassess priorities. This, I hope, will ensure that businesses advance their risk resilience strategies and result in decisive and impactful action to combat existential risks like climate change,” said Peter Giger, Group Chief Risk Officer, Zurich Insurance Group.
“The COVID-19 crisis has shone a spotlight on organizational resilience. As firms look to the future, they are matching their risk and resilience arrangements with a threat landscape marked by significant customer and workforce behavioural shifts. Just as economic and climate concerns will require firms to refocus business plans, a greater reliance on digital infrastructures will mean a marked increase in cyber risk exposures. To optimize recovery, organizations will need to build greater preparedness into their business models in order to be more resilient in the face of future disruptions,” said John Doyle, President and Chief Executive Officer of Marsh.
“The global pandemic has unleashed untold damage to our economies and societies. Business leaders in Asia have recognized that risk in their response to the Forum’s survey, with infectious diseases appearing as the number one risk for the region. As new partners to the initiative, we are working to better understand the interconnections between the risks perceptions of business leaders and their broader multistakeholder community. What we already know is that tackling the intersecting risks of pandemic, financial risks, and climate change will be a cornerstone of the desired new normal,” said Lee Hyung Hee President, Social Value Committee, SK Group.
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