Developed by the ADC Forum, in collaboration with KPMG, the unique aspect of research is identifying risk interconnectivity. By identifying the most interconnected risks, we gain insight into systems behind the risks, aiding mitigation and identification of opportunities.
We identify the risk and opportunities based on input from business, government and academia.
Our research finds that a broad thematic shift in the 10 top-rated risks since 2010, from environmental risks to economic risks in 2011. In 2012 risks from both these categories dominated the top 10, reflecting a world in which extreme climate events and international economic uncertainty are becoming givens.
- Climate change and associated risks – notably flooding and storms and cyclones continue to dominate the risk landscape in terms of likelihood and severity.
- Inadequate R&D investment has risen to become the second most costly and the fifth most likely risk.
- Geopolitical conflict was rated highly in response to political and economic turmoil in the Middle East and Europe.
- Major trading partner weakness was rated highly.
- Demographic challenges of funding and caring for ageing baby boomers remains a concern.