FRANCISCO ASHLEY ACEDILLO

The Global Risk Report is an annually-published

report of the WORLD ECONOMIC FORUM
(WEF) through its Global Risk Network initiative.
The WEF is a Geneva-based non-profit foundation
best
known for its annual meeting in Davos, Switzerland
which brings together top business leaders, international
political leaders, selected intellectuals and journalists to
discuss the most pressing issues facing the world. Aside
from meetings, the WEF produces a series of research
reports and engages its members in sector specific
initiatives.

What is RISK?
It is potential HARM that may arise from a future
event, which may accrue either from incurring
a
cost ("downside risk") or by failing to attain
some
benefit ("upside risk").
-WIKIPEDIA

Analysis is based on methodology and data set

developed by Zurich Financial Services;

The data set covers 158 countries and more

than
30 global risks.

Data are drawn from established and reliable

public sources and incorporated into the
methodology as mentioned above, for a spectrum
of risk ranging from low to high.

Global Scope: To be considered global, a RISK

should have the potential to affect no less than
three world regions on at least two different
continents; these risks may be regional or local in
origin, but impact can potentially be felt globally.

Cross-Industry Relevance: The risk has to affect

three or more industries.

Uncertainty: There is uncertainty about how

the risk manifests itself within 10 years
combined with uncertainty about the
magnitude of its impact (assessed in terms of
likelihood and severity).

Economic Impact: The risk has the potential

to cause economic damage of US$ 10
billion or more.

Multistakeholder Approach: The

complexity of risk both in terms of its effects
and its drivers, including its interlinkages with
other risks, requires multistakeholder
approach for its mitigation.

The risks are classified in five domains:

economic, geopolitical, environmental,
societal and technological risks.

NatCat: Natural Catastrophe

Nanoparticle: In nanotechnology, a particle

is defined as a small object that behaves as a
whole unit in terms of its transport and
properties; further classified according to size:
in terms of diameter, cover a range between
100 and 2500 nanometers (one nanometer
equal to one billionth of a meter)
NANOTECHNOLOGY - shortened to
"nanotech", is the study of controlling matter
on an atomic and molecular scale and
involves developing materials or devices
within that size

The Global Risks Landscape

The visualization of risk on the landscape places

risks
by severity of impact (measured in US$) on the
vertical axis and the likelihood of occurrence on the
horizontal axis over a 10-year time horizon.
The risks which appear in the upper right-hand
corner are those with the highest impact and
highest
likelihood and are the focus of this report.

The Risks Interconnection Map (RIM)

and Global Risks Experts Perception
Survey

One of the highlights of the Global Risks

Report;
Analyzes the interconnectedness between
global risks;
These detailed links aim to increase
awareness and understanding of the
interlinkages among risk issues;
Gives implications for decisions on risk
management and mitigation.

FRANCISCO ASHLEY ACEDILLO