Dear Members and Friends
Company boards need to understand key risks in order to manage them. Here are the top 5 global risks shared by our collaborator the Australian Institute of Company Directors (AICD).
Have a great week ahead.
Warmest regards
Victor Mills
Chief Executive
Top 5 global risks
In an interconnected world, shocks can be spread swiftly with devastating impact and long-lasting effects politically, socially and economically.
Earlier this year, the World Economic Forum released its latest Global Risks Report, based on a survey of about 750 experts and decision-makers across government, academia, non-government and international organisations.
The report lists the following risks for 2017 in terms of likelihood:
| 1. |
Extreme weather events
Environment-related risks have consistently featured high in the risk report for the last seven years. Ineffective management of the environment has led to local problems that are increasingly having global impacts.
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| 2. |
Large-scale involuntary migration
Involuntary migration caused mainly by conflict and war, but also by climate and disease, could exacerbate already existing social problems, according to the report.
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| 3. |
Major natural disasters
A greater interdependence among different infrastructure networks is increasing the scope for systemic failures caused by natural disasters. This trend could push the already high costs of natural disasters to 'astronomical' levels.
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| 4. |
Terrorist attacks
Terrorist attacks not only pose a grave direct risk, but the response to an attack can be an indirect risk in that it disrupts civic and economic activity.
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| 5. |
Data fraud/theft
Technology related risks have only recently emerged as one of the top concerns of survey respondents. There is now greater awareness than ever of cyber risks following the Russian cyberattacks during the US presidential election and the Sony Pictures hack. |
This is an edited version of an article that originally appeared on the Australian Institute of Company Director’s website. Click here for the full article.
The AICD’s International Company Directors Course is an education programme that covers strategy, risk, compliance and financial management in an international context. Find out more here.
IMPORTANT NOTE: 2017 MEMBERS’ DIRECTORY
By now all Chamber member companies would have received a complimentary copy of the directory. Extra copies are available at the member-exclusive price of S$28 per copy.
Non-members may purchase the directory at S$68 per copy.
Please email [email protected] to place your orders.
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