Geopolitical tensions are increasing, according to the World Economic Forum
Jan 11, 2022
Today (11/1) marks the release of The World Economic Forum (WEF) Global Risks report 2022. The report contains a summary of top short- and long term risks, risks which have been identified by 12,000 respondents.
Environment and erosion of social cohesion has been identified as the main risks in both the short and long term. The ongoing climate change entails new risks that may affect countries and companies. Pandemics and instability in several parts of the world have resulted in more countries and regions working to secure their own interests first, rather than contribute to global ones. In addition to these risks, infectious diseases, cybersecurity, digital inequality, debt crises and asset bubbles bursting are identified as the top ten 0-2 year risks.
In the longer term of 5-10 years, geopolitical resource contestation and adverse tech advances have been identified as major threats. Geoeconomic confrontation about raw materials is seen as conceivable. Furthermore, the increased competition in space is seen as a risk due to the fact that t the space is getting more crowded, and that new technology brings opportunities for potential space mining: a new operative area where different actors want to position themselves.
More than 25% of the 12,000 respondents to the WEF's survey believe these risks have increased during the pandemic.
Many of these risks mean that the geopolitical arena will be redesigned and both large and smaller nations will need to (re-)position themselves in the dynamic world order.
These and similar issues have been Consilio´s focus since the last 11 years, as we have been supporting companies to help them understand, position themselves and to manage geopolitical risks and opportunities. Lately we have also established a cooperation with Beyond Intent, a leading consulting firm in sustainability. By combining Consilio's geopolitical expertise with Beyond Intent's sustainability expertise, we are well positioned to help companies maneuver in the complexity of the future.