Space: The next realm of risk

As commercial space enterprises race to secure advantages for delivering satellite services and internet-related communications, a host of risks will potentially emerge. The report noted these include the higher possibility of collisions that could harm the orbit of other key systems on Earth, damage valuable equipment, or even increase international tensions.

"Key systems impacted could include the internet and all that relies on it, precision weaponry, early-warning systems, and the global positioning system [GPS] network—which is critical to communications systems, electrical power grids, and financial networks," the report authors wrote.

(Credit: mungk/Shutterstock.com)

Climate change & extreme weather

The World Economic Forum's most recent "Global Risk Report" noted a united front is in dire need in the battle against climate change, which is leading to more extreme weather events, including droughts, fires, floods, and species loss. However, the scattershot approach being deployed across countries and regions is pulling a barrier up between collaboration efforts.

Complete inaction against climate change will cost 4%-18% of global GDP, the World Economic Forum reported.

In addition, climate change threatens to cause havoc for biodiversity, which will carry a range of new risks with it, according to Wynne Lawrence, a senior associate at Clyde & Co. "Increased scrutiny of both the dependencies and impacts that companies have on biodiversity will lead to an uptick in litigation risk. This takes place against a background of enhanced due diligence requirements for corporate value chains and legal recognition of the rights of nature," Lawrence said.

(Credit: Onur/Adobe Stock)

Digital dependency drives up cyber risks

Among one of the risks that grew in severity during the pandemic, cybersecurity concerns will continue to increase as society becomes more digitally dependent. During 2020, malware and ransomware attacks exploded and are now "outpacing societies' ability to effectively prevent or respond to them," according to the report.

Digital dependency also carries less tangible risks, including disinformation, fraud, and a lack of digital safety, according to Zurich. All of these can lead to public mistrust and political instability.

(Credit: whiteMocca/Shutterstock.com)

Haves & have-nots grow further apart

The pandemic has driven labor market imbalances and the adoption of protectionist policies, while expanding the education and skills gap, according to the report. While advanced economies are expected to see 0.9% GDP growth by 2024, developing nations (excluding China) are anticipated to see GDP fall 5.5% below pre-pandemic growth projections, according to the World Economic Forum.

Among the forces hampering developing nations are scarce healthcare resources, lack of digital infrastructure, and stagnant job markets. Regarding the healthcare of emerging nations, Zurich reported low vaccination rates have burdened healthcare systems, as the 52 poorest countries have a vaccination rate of just 6%.

(Credit: Javier Galeano/AP)

Migration, insecurity & homelessness

Considered a long-term concern by the World Economic Forum, global homelessness and migration issues carry risks, including a potential "livelihood crisis" for large parts of the world. Countries imposing policies that hinder migrants seeking refuge and opportunity are seen as exacerbating the problem, according to the report.

Additionally, environmental and political crises are driving "involuntary migration," as millions have been forced to flee their homes and many have not been successful at finding a new place to settle. Some 4 million people were stateless in 2020, the highest number in a decade, according to the report.

(Credit: AP Photo/Gregory Bull)

Space: The next realm of risk

As commercial space enterprises race to secure advantages for delivering satellite services and internet-related communications, a host of risks will potentially emerge. The report noted these include the higher possibility of collisions that could harm the orbit of other key systems on Earth, damage valuable equipment, or even increase international tensions.

"Key systems impacted could include the internet and all that relies on it, precision weaponry, early-warning systems, and the global positioning system [GPS] network—which is critical to communications systems, electrical power grids, and financial networks," the report authors wrote.

(Credit: mungk/Shutterstock.com)