Unemployment is the main concern for business executives globally, with fiscal crisis – the top concern in 2019 – coming third, according to the World Economic Forum’s interactive map on Regional Risks for Doing Business 2020.
Infectious diseases progressed 28 spots and is the second most recurring risk, appearing in the top 10 in all regions except South Asia.
While the top risks are mostly related to economics, climate-related risks are causing greater concern this year, with natural catastrophes (up seven places), extreme weather events (up five), biodiversity loss and ecosystem collapse (up eight), and failure of climate-change adaptation (up two) featuring more prominently. Other significant changes include human-made environmental catastrophes (down six), failure of urban planning (down seven), and terrorist attacks (down nine).
“The employment disruptions caused by the pandemic, rising automation, and the transition to greener economies are fundamentally changing labor 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 labor 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. 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,” said Lee Hyung Hee President, Social Value Committee, SK Group.