Summary of the Global Risks Report 2025 by the World Economic Forum
The Global Risks Report 2025, in its 20th edition, provides an in-depth analysis of the major global risks shaping the world in the coming years. The report is based on the 2024-2025 Global Risks Perception Survey, conducted with over 900 experts from various fields, and explores short-term (2025), medium-term (up to 2027), and long-term risks (up to 2035).
Key Findings of the Report
1. Global Outlook: A World Increasingly Divided
- The report highlights the growing geopolitical, economic, and social divisions, leading to greater global instability.
- Global optimism is declining, with 52% of experts expecting instability and 62% predicting turbulent times until 2035.
- There is a growing perception that current global governance mechanisms are insufficient to address emerging risks.
2. Short-Term Risks (2025 – 2027)
- Geopolitical conflicts and economic warfare: The risk of armed conflicts and trade confrontations is intensifying, making it the biggest short-term concern.
- Political polarization and misinformation: The rise of generative AI is amplifying the spread of fake news, making it harder to combat misinformation.
- Technology and polarization: The rapid growth of AI and biotechnology could increase inequalities and create unpredictable impacts.
3. Long-Term Risks (2035 – “Point of No Return”)
- Climate change and pollution: Environmental impact remains the biggest long-term structural risk.
- Unregulated biotechnology: Advances in genetic engineering may lead to unexpected consequences and ethical dilemmas.
- Extreme population aging: The increasing elderly population will pose economic and social challenges for many countries.
Outlook and Recommendations
- Multilateral cooperation is essential to mitigate global risks.
- Public and private sector leaders need to strengthen governance and regulate new technologies.
- Strategies to combat climate change, social inequalities, and economic instability will be crucial for a safer and more sustainable future.
This report underscores the urgent need for coordinated action to prevent a more fragmented and unstable global future.
Impacts on Companies and Concerns for Boards of Directors and Advisory Boards
The Global Risks Report 2025 highlights risks that can directly affect corporate governance, business strategy, and sustainability. Below are the main impacts and key concerns that Boards of Directors and Advisory Boards should consider.
1. Geopolitics and Economic Conflicts
Impacts on Companies
- Increased trade restrictions: Tariffs, sanctions, and economic barriers may disrupt global supply chains and limit access to strategic markets.
- Instability in emerging markets: Geopolitical conflicts can devalue currencies, drive inflation, and increase investment volatility in certain regions.
- Dependence on critical suppliers: The trade war between major powers may cause shortages of essential materials such as semiconductors and raw materials.
Concerns for Boards
✅ Geopolitical risk mapping to mitigate financial and operational impacts.
✅ Diversification of the supply chain to reduce vulnerability to sanctions and conflicts.
✅ Strategic planning to manage currency volatility and inflation.
2. Climate Change and Environmental Regulation
Impacts on Companies
- High compliance costs: New environmental regulations may require investment in sustainability, carbon offsetting, and circular economy practices.
- Reputational damage: Companies failing to adopt ESG practices may face boycotts, loss of investors, and greater scrutiny from stakeholders.
- Operational disruptions: Extreme weather events (floods, fires, droughts) can impact infrastructure, production, and logistics.
Concerns for Boards
✅ Adoption of robust ESG policies and reliable sustainability reporting.
✅ Investment in energy efficiency and low-carbon economy.
✅ Monitoring and mitigation of climate risks across company assets.
3. Technological Advancements and Cybersecurity Risks
Impacts on Companies
- Rising cyberattacks: Companies are becoming increasingly sophisticated targets for hackers, ransomware, and industrial espionage.
- AI and misinformation: The spread of AI-generated fake content could harm corporate reputation and affect data-driven decision-making.
- Automation and labor impacts: AI-driven job automation could create labor disputes and social challenges.
Concerns for Boards
✅ Continuous review of cybersecurity strategies and incident response plans.
✅ Monitoring and countering misinformation involving the brand.
✅ Workforce planning to manage automation and emerging technologies.
4. Social Polarization and Corporate Reputation
Impacts on Companies
- Pressure to take political and social stances: Consumers and employees expect companies to take a stand on issues like diversity, human rights, and corporate ethics.
- Governance and compliance crises: Governments and regulators are increasing scrutiny over corporate misconduct, corruption, and inequality.
- Challenges in talent retention: Companies failing to promote an inclusive and innovative environment risk losing competitiveness in the job market.
Concerns for Boards
✅ Reviewing corporate culture and values.
✅ Ensuring compliance with new transparency and governance laws.
✅ Investing in talent engagement and retention strategies.
5. Super-Aging and Workforce Transformations
Impacts on Companies
- Talent shortage: Developed countries are facing an accelerated aging population, reducing available workforce.
- Continuous requalification needs: With rapid technological advancements, skills become obsolete quickly.
- Higher labor and pension costs: Companies may need to invest more in healthcare plans and benefits for older workers.
Concerns for Boards
✅ Talent recruitment strategies to attract and retain both young and experienced employees.
✅ Workforce requalification programs for ongoing training.
✅ Analysis of aging population impact on consumer demand and product trends.
Conclusion: How Boards Should Act
Boards of Directors and Advisory Boards must act proactively, anticipating trends and adjusting business strategies to navigate these global challenges. Key recommendations include:
✅ Adopting an integrated risk approach, combining geopolitics, ESG, technology, and societal changes.
✅ Strengthening organizational resilience, investing in cybersecurity, innovation, and sustainability.
✅ Creating an agile governance culture, enabling quick responses to regulatory and economic shifts.
✅ Focusing on innovation and digital transformation, ensuring long-term competitiveness.
Companies that quickly adapt and transform risks into opportunities will gain a competitive advantage in the evolving global landscape.