Page 165 - Risk Management in current scenario

condition; "Water", in a form of water shortage, excess rain or draught,
increase in acidic nature of sea impacting the coral reefs slated to be
lifeline of aqua world, rise in sea temperature etc; "Earth" urbanization,
reduction of forest, rise in temperature etc. These will fundamentally
impact the ability to grow foods, have safe drinking and places to live.

The World Economic Forum (WEF) every year since 2008 comes out with
the list of risks impacting the world both on likelihood and impact scale.
These risks fall into five broad categories of the Economic, Environmental,
Geopolitical, Societal and Technological front. These risks may be
compared with fundamental building blocks of "five elements" and
"manmade" creations. Economic and Environmental fall under the five
fundamental elements, while Technological falls under manmade while
Geopolitical and Societal are a combination of the two.

From 2008 to 2010, top five risks reported by WEF both in terms
likelihood and impact came from Economic, Geopolitical and Societal risks
categories; of which the top two risks were from the economic category.
From 2011 onwards, risks from environmental categories started figuring
out till the latest report in 2018. Also from 2012 onward, a cyber attack
on technology category started figuring out till 2018 and economic risk
not figuring out in last three years. Since 2015 to 2018, the keys risks
coming are from the environment, geopolitical and cyber attack.

Based on this observed global trend over last 11 years since 2008, there
have been drastic changes in the top five global risks which are clearly
evident in the five key elements of the building blocks. The Air quality is
getting poor resulting in diseases, there is a sudden eruption of air
purification market indicating the nature of pollution. At the global level,
there have been changes in the climate with extreme cold/heat, rain,
flood, etc. Similarly, the information technology and digitalization have
taken over the entire world exposing the risk of total collapse due to
cyber and similar attacks.

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