Zurich – a contributing partner to the Global Risks Report 2009

For the second time in a row, Zurich has joined a handful of financial and academic institutions to contribute to annual Global Risks report – a collaborative effort under the auspices of the World Economic Forum (WEF) and produced in conjunction with the Global Risk Network.

Global Risks 2009 – which will be distributed during this year’s Davos meeting from January 28 through February 1 – takes a comprehensive look at key global risks likely to be relevant over the next 10 years.

One overarching message is that economic and financial risks that were highlighted in previous reports have materialized with enormous consequences. Although political and private sector leaders are now focused on the immediate economic challenges, the report warns against losing sight of longer term issues:

“Risks related to climate change, unresolved resource issues and potentially more defensive and protectionist stances by states could lead to a conflation of these global risks with significant societal and economic costs.”

Top five risks

The five top risks identified in the 2009 report are deteriorating fiscal positions, a further reduction in China’s growth rate, continued depreciation of asset prices, resource challenges and gaps in global governance. The last risk in particular provides a universal challenge. The report identifies “the absence or lack of effective and inclusive governance on global issues such as financial stability, trade, climate change, water and security as a source of risk in and of itself.”

Zurich’s work for the Global Risks Report 2009 was coordinated by the Group’s Chief Economist, Daniel Hofmann. In addition to contributing to a number of chapters, Zurich provided, for the first time, insights derived from the innovative Global Risk Assessment Module (GLORAM) that was also developed in the Office of the Chief Economist.

Download Global Risks Report 2009