Global Risk Report - UPSC Notes

The World Economic Forum holds its annual meeting in Davos, Switzerland. Before this meeting, the forum conducts a study and presents a report. This report is the Global Risk Report or the Global Risks’ Report. It is a detailed analysis of the crises that hit different parts of the world in a year. It brings out the interconnectedness of all these risks and identifies possible strategies to reduce these risks. 

If you are an aspirant for the IAS Exam, know that the questions will include details of this report, statistical data, etc. So, you should explore the topic and study it well.

Apart from the Global Risk Report, there are multiple other national and international organisations/platforms that release annual reports based on analysis of various indicators. Candidates can learn more about such Global Indices and India’s Rankings in the same at the linked article. 

Global Risk Report: A Detailed Insight

The report is framed every year with the help of multiple sources. Companies dealing in insurance and reinsurance are engaged in making the report. Other sources include interviews, workshops as well as surveys conducted on expert professionals who are internationally recognised. 

This report brings out a detailed analysis of the various risks that endanger the sustainability of life in the world. It further brings out possible plans and strategies that countries and businesses can develop to reduce the risks. It basically takes a multi-stakeholder approach to factor in different viewpoints, that might help in reducing the risks more effectively. 

The global risk report UPSC studies are of immense importance for the aspirants given the present-day situation of the COVID pandemic.

The global risk report published by the World Economic Forum in the year 2021 focused on the advent of the pandemic and the subsequent impacts of the same on the sustainability of life in the world. Other major factors like the water crisis and the threats from the weapons of mass destruction formed the core of the global risk report in 2021, as well as in 2020. The advent of the pandemic had come up as an additional factor that would affect life and business in the upcoming years. 

As a part of the IAS preparation, the Global Risk Report of 2020 and 2021 will be of immense importance, so as to allow the students to understand the changing nature of the risks in the last few years. This will also enable the students to understand the interconnectedness of the risks, and the possible strategies that can be taken up to reduce the risks.

Global Risk Report 2022

The Global Risk Report 2022 report will be quite similar to the 2021 report and will still have a primary focus on the impacts of the COVID pandemic. Besides the threats from the pandemic, other factors that will be included in the 2022 report are: 

  • Water crisis 
  • Droughts prompting a famine 
  • Conflicts between countries 
  • Probable use of mass destruction weapons
  • Post-pandemic status of the world economy

Students should keep track of the 2022 report to score high on the current affairs quiz. This is a scoring section of the examination. High marks here will determine the position of the student to a great extent.

India and the Global Risk Report

The risks pertaining to India are likely to be the primary focus of the UPSC 2022. In the 2021 Climate Risk Index (CRI), India has ranked 7th. This means it is the 7th worst-hit country in the world, facing a number of climate risks. In addition to this, the pandemic has certainly worsened the position of India in the context of the Global Risk Report. India’s slow and declining economic condition in the last two years will also be a major factor in determining its overall risk percentage in this case. 

While preparing UPSC notes, students should work on the risk report with a focus on both India and the rest of the world. The Global risk Report is inclusive of worldwide risks that may or may not affect India directly. However, its importance from the exam’s perspective is immense, and therefore, aspirants should prepare accordingly. 

Frequently Asked Questions on Right Livelihood Award

What are the criteria for a risk to qualify as a global risk?

A risk is qualified as a global risk if it impacts three regions across the world. These regions must cover two different continents. Even if these risks tend to have a local or a regional origin, the impact must be felt globally for qualification as a global risk. The COVID-19 pandemic serves as a prominent example of global risk.

What are the five areas covered in determining global risks?

The five areas covered in determining global risks include:

  1. Geopolitics
  2. Economics
  3. Environment
  4. Technology
  5. Society

When was the Global Risk Network established?

The Global Risk Network was established in 2004 for tracking the evolution of various sets of risks, that belong to the five areas of Geopolitics, Economics, Environment, Technology and Society.

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