Failure to mitigate adverse impact of climate change is the biggest risk facing the world this year with greater damage potential than even the weapons of mass destruction, says a WEF survey. On the economic front, 'deflation' is the risk of highest concern for doing business in India, said the Global Risks Report 2016, released here on Thursday by the World Economic Forum (WEF) ahead of its annual meeting in Davos next week. It showed there is an increased likelihood for all risks, this year -from environment to geopolitics, technology to society and economy.
“The risk with the greatest potential impact in 2016 was found to be a failure of climate change mitigation and adaptation,” WEF said, adding that an environmental risk has topped the ranking for the first time since the survey was launched in 2006. “This year, it was considered to have greater potential damage than weapons of mass destruction (2nd), water crises (3rd), large-scale involuntary migration (4th) and severe energy price shock (5th),” WEF said. However, the number one risk in 2016 in terms of likelihood is large-scale involuntary migration, followed by extreme weather events, failure of climate change mitigation and adaptation, interstate conflict with regional consequences and major natural catastrophes.
As per the country-level data on how businesses perceive global risks in their countries, deflation was on the risk with highest concern for doing business in India. Globally, 'unemployment and under-employment' emerged as the most widespread risk of highest concern for doing business, followed by energy price shock and cyber attacks.