Understanding Risk

The world economy is in a low-growth trap. A range of increasing risks are weighing on growth: youth unemployment and underemployment, Populist polarisation, world trade, and cyber criminals exploiting our thirst for technology. But how can the global Business community achieve a paradigm shift to mitigate these risks?

By scrolling through the interactive infographic below, you can find out how these four risks are affecting businesses and discover the Solutions that can help create sustainable, long-term growth.

Unemployment/​Underemployment

Economic Risk

Global youth unemployment is on the rise along with underemployed youth who are either overeducated for current roles or in part time jobs.

This is largely due to the economic slowdowns experienced in Latin America, the Caribbean, Asia and the Pacific.

Populist Polarization

Economic Risk

Globalization, rising wealth disparity, migration flows and anti-establishment views have contributed to the rise in populist polarization.

Business Impact

Political outcomes play a role:

One of the UK’s “big six” energy suppliers revealed Q1 2017 revenues were impacted by the decline in the value of Sterling which fell after the UK voted to leave the European Union. The company expects the UK market to remain “challenging”.

Source: E.On, 2017

Wealth inequality impacts corporate growth:

Companies that can afford to hire well educated workers have a stronger business trajectory. Less successful companies that pay employees poorly will see their growth fall further behind.

Source: Harvard Business Review, 2017

Technology

Economic Risk

Over 3.2 billion people around the world have access to and use the internet.

As the world becomes connected, cybercrime is growing.