Page 91 - WEF Reoprt 2020

Appendix A:

Descriptions of Global Risks 2020

Global Risks
A “global risk” is defined as an uncertain event or condition that, if it occurs, can cause significant negative impact
for several countries or industries within the next 10 years.

To ensure legibility, the names of the global risks have been abbreviated in the figures. The portion of the full name
used in the abbreviation is in bold.

Global Risk Description

Unsustainably overpriced assets such as commodities, housing, shares
Asset bubbles in a major economy
etc. in a major economy or region
Deflation in a major economy Prolonged near-zero inflation or deflation in a major economy or region

Failure of a major financial Collapse of a financial institution and/or malfunctioning of a financial system
mechanism or institution that impacts the global economy
Failure to adequately invest in, upgrade and/or secure infrastructure
Failure/shortfall of critical networks (e.g. energy, transportation and communications), leading to
infrastructure
pressure or a breakdown with system-wide implications
Economic Fiscal crises in key economies Excessive debt burdens that generate sovereign debt crises and/or
liquidity crises
A sustained high level of unemployment or underutilization of the
High structural unemployment or
productive capacity of the employed population
underemployment
Large-scale activities outside the legal framework such as illicit financial
Illicit trade (e.g. illicit financial flows, flows, tax evasion, human trafficking, counterfeiting and/or organized crime
tax evasion, human trafficking,
organized crime) that undermine social interactions, regional or international collaboration,
and global growth
Significant energy price increases or decreases that place further
Severe energy price shock economic pressures on highly energy-dependent industries
(increase or decrease)
and consumers
Unmanageable increases in the general price levels of goods and services
Unmanageable inflation
in key economies

Extreme weather events Major property, infrastructure, and/or environmental damage as well as loss
(e.g. floods, storms) of human life caused by extreme weather events

The failure of governments and businesses to enforce or enact effective
Failure of climate-change measures to mitigate climate change, protect populations and help
mitigation and adaptation businesses impacted by climate change to adapt
Environmental Major biodiversity loss and Irreversible consequences for the environment, resulting in severely

ecosystem collapse (terrestrial
depleted resources for humankind as well as industries
or marine)
Major natural disasters (e.g.
Major property, infrastructure, and/or environmental damage as well as
earthquakes, tsunamis, volcanic
volcanic activity, landslides, tsunamis or geomagnetic storms
eruptions, geomagnetic storms) loss of human life caused by geophysical disasters such as earthquakes,
Human-made environmental Failure to prevent major human-made damage and disasters, including
damage and disasters environmental crime, causing harm to human lives and health,
(e.g. oil spills, radioactive
contamination) infrastructure, property, economic activity or the environment

86 Appendices