World Economic Forum Survey Predicts An Increase In Global Upheavals Over Next 6 Months

The survey expects the volatility of economic and financial conditions within and between major economies to continue

With an increase in global economic instability and political tensions, the fragility of geoeconomic and geopolitical relations between major world economies will likely lead to an increase in global upheavals over the next 6 months, a new survey has found. 

Released on Thursday by the World Economic Forum’s Chief Risks Officers (CROs) community, the survey states that more than 85 per cent of CROs expect the volatility of economic and financial conditions within and between major economies to continue, reported PTI. The Geneva-based WEF is an international organisation, which claims to be focused on public-private cooperation. 

The community comprises 40 risk professionals, from a wide range of multinationals, covering technology, healthcare, financial services, professional services, and industrial manufacturing. 

The survey identifies armed conflicts, regulatory changes, macroeconomic indicators, and pricing and supply disruptions of key raw materials as potential threats to organisations. 

“CROs are facing a multitude of pressing concerns as they look to the remainder of 2023,” said Ellissa Cavaciuti-Wishart, Head of Global Risks Initiative, World Economic Forum.

With 90 per cent of the community calling for an increase in regulation, CROs agree that the deployment and development of AI technologies is not in pace with its supervision and risk management. About 75 per cent of them identify AI and its usage as a reputational risk for organisations. Majority of the respondents believe that the development of these technologies should be slowed down or paused until we understand the risks better. 

Cavaciuti-Wishart added that, “Whilst continuing to grapple with rising costs and supply disruptions, organisations are increasingly faced with a number of ethical and societal risks, which are far more complex to navigate than regulatory compliance alone.”

The survey aims to provide a mid-year analysis of the most important macro risks facing organisations by looking at global volatility in five broad areas - geopolitical relations, domestic politics, economy, society, and technology.