FRANCISCO ASHLEY ACEDILLO

The Global Risk Report is an annually-published report of the WORLD ECONOMIC FORUM (WEF) through its Global Risk Network initiative.

The WEF is a Geneva-based non-profit foundation best known for its annual meeting in Davos, Switzerland which brings together top business leaders, international political leaders, selected intellectuals and journalists to discuss the most pressing issues facing the world. Aside from meetings, the WEF produces a series of research reports and engages its members in sector specific initiatives.

What is RISK?

It is potential HARM that may arise from a future event, which may accrue either from incurring a cost ("downside risk") or by failing to attain some benefit ("upside risk").

-WIKIPEDIA

Analysis is based on methodology and data setdeveloped by Zurich Financial Services;

The data set covers 158 countries and more than 30 global risks.

Data are drawn from established and reliable public sources and incorporated into themethodology as mentioned above, for a spectrum of risk ranging from low to high.

Global Scope: To be considered global, a RISK should have the potential to affect no less than three world regions on at least two different continents; these risks may be regional or local in origin, but impact can potentially be felt globally.

Cross-Industry Relevance: The risk has to affect three or more industries.

Uncertainty: There is uncertainty about how the risk manifests itself within 10 years combined with uncertainty about the magnitude of its impact (assessed in terms of likelihood and severity).

Economic Impact: The risk has the potential to cause economic damage of US$ 10 billion or more.

Multistakeholder Approach: The complexity of risk both in terms of its effects and its drivers, including its interlinkages with other risks, requires multistakeholder approach for its mitigation.

The risks are classified in five domains: economic, geopolitical, environmental, societal and technological risks.

NatCat: Natural Catastrophe

Nanoparticle: In nanotechnology, a particle is defined as a small object that behaves as a whole unit in terms of its transport and properties; further classified according to size: in terms of diameter, cover a range between 100 and 2500 nanometers (one nanometer equal to one billionth of a meter) NANOTECHNOLOGY - shortened to "nanotech", is the study of controlling matter on an atomic and molecular scale and involves developing materials or devices within that size

The Global Risks Landscape

The visualization of risk on the landscape places risksby severity of impact (measured in US$) on the vertical axis and the likelihood of occurrence on the horizontal axis over a 10-year time horizon.

The risks which appear in the upper right-handcorner are those with the highest impact and highestlikelihood and are the focus of this report.

The Risks Interconnection Map (RIM) and Global Risks Experts Perception Survey

One of the highlights of the Global Risks Report;Analyzes the interconnectedness between global risks;These detailed links aim to increase awareness and understanding of the interlinkages among risk issues;Gives implications for decisions on risk management and mitigation.

FRANCISCO ASHLEY ACEDILLO

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