The 2016 Global Risk Report published by the World Economic Forum provides some interesting insights on the big risks currently being perceived globally. Top of the list for risks with the biggest perceived impact is the failure of climate change mitigation and adaptation, ahead of weapons of mass destruction and then water crises. Large-scale involuntary migration was also rated among the top five for impact, as was severe energy price shock (increase or decrease).
In terms of the risks rated most likely, top of the list was largescale involuntary migration, with last year’s top scorer – interstate conflict with regional consequences – giving way to the environmental risks of extreme weather events and the failure of climate change mitigation and adaptation, followed by major natural catastrophes.
For Australia, top of the risk list is an asset bubble arising from over-evaluation of property and the recent equity market turmoil in China and potential spillovers into the other countries. This risk is top in seven economies of East Asia and the Pacific - Australia, Cambodia, China, Hong Kong SAR, Myanmar, New Zealand and Thailand.
For further reading see: http://www.weforum.org/reports/the-global-risks-report-2016