Social turmoil drivers#

Governments, societies and businesses need to better understand the interconnectivity of risk in todayРІР‚в„ўs technologies if we are truly to reap the benefits they offer,РІР‚Сњ said Steve Wilson, Chief Risk Officer for General Insurance at Zurich. РІР‚СљThe Arab Spring demonstrated the power of interconnected communications services to drive personal freedom, yet the same technology facilitated riots in London. Our daily lives are almost entirely dependent on connected online systems, making us susceptible to malicious individuals, institutions and nations that increasingly have the ability to unleash devastating cyberattacks remotely and anonymously. ItРІР‚в„ўs equally important that regulations be made more flexible to effectively respond to change,РІР‚Сњ said David Cole, Chief Risk Officer at Swiss Re. We need to get the balance right with regulations and, to that end, our safeguards must be anticipatory rather than reactive. РІР‚СљWeРІР‚в„ўve seen examples of over-regulation, like the response to the Icelandic volcanic eruptions, or under-regulation, such as the subprime or Eurozone crises. The weakness of existing safeguards is exposed by risks related to emerging technologies, financial interdependence, resource depletion and climate change, leaving society vulnerable. Policies, norms and institutions from the 20th century may no longer protect us in a more complex and interdependent world. This report is a wake-up call to both the public and private sectors to come up with constructive ways to realign the expectations of an increasingly anxious global community,РІР‚Сњ said John Drzik, Chief Executive Officer of Oliver Wyman Group ( Marsh & McLennan Companies). РІР‚СљIndividuals are increasingly being asked to bear risks previously assumed by governments and companies to obtain a secure retirement and access to quality healthcare. Collectively, these trends risk undoing the progress that globalization has brought. РІР‚СљThis new malaise is particularly acute in the industrialized countries that historically have been a source of great confidence and bold ideas.РІР‚Сњ Global Risks 2012 analyses three major risk cases of concern globally:Р”В«ulging populations of young people with few prospects, growing numbers of retirees depending on debt-saddled states (stoking fiscal imbalances) and the expanding gap between rich and poor are all fuelling resentment worldwide. РІР‚СљFor the first time in generations, many people no longer believe that their children will grow up to enjoy a higher standard of living than theirs,РІР‚Сњ said Lee Howell, the World Economic Forum Managing Director responsible for the report. These are the findings of a survey of 469 experts and industry leaders, indicating a shift of concern from environmental risks to socioeconomic risks compared to a year ago.

These risks in tandem threaten global growth as they are drivers of nationalism, populism and protectionism at a time when the world remains vulnerable to systemic financial shocks, as well as possible food and water crises. LONDONРІР‚вЂњ The worldРІР‚в„ўs vulnerability to further economic shocks and social upheaval risk undermining the progress that globalization has brought, warns the World Economic Forum in its Global Risks 2012 report, the seventh edition, published today.Р”В¬hronic fiscal imbalances and severe income disparity are the risks seen as most prevalent over the next 10 years.

Read Global Risks 2012 report in full:.Key crisis management lessons from JapanРІР‚в„ўsearthquake, tsunami and nuclear disasters are highlighted.Report analyses top 10 risks in economic, environmental, geopolitical, societal and technologicalcategories.A dystopian world, unsafe safeguards and the dark side of connectivity are this yearРІР‚в„ўs major risk cases.Economic imbalances and social inequality risk reversing the gains of globalization.

Social turmoil drivers#