The Global Risks Report 2024

to ensure returns are more equally shared. Fiscal incentives can be deployed to encourage further innovation within the private sector, while acceptance of new technologies and approaches would be bolstered by governance and oversight. The role of philanthropy, should also not be overlooked as a key source of funding for ambitious projects to eradicate disease and boost climate resilience, for example. 8Policy-makers need to adopt a dual vision, harnessing the power of innovation to address present challenges, while keeping an eye on the future. Investing in breakthrough endeavors is often a long-term bet, involving some degree of risk-taking and failure, but coupled with wins that boost our ability to mitigate or adapt in the face of global risks. Collective actions 3.3 When the sum of individual actions are directed towards a common goal, change can be effected on a global scale. Collective action is not the result of collaboration, but of the aggregate and independent effort of single citizens, companies and countries. Examples include expanding the adoption of a vegetarian diet or reducing combustion-engine cars and air travel to slash carbon emissions. These changes in lifestyle or consumption patterns are insignificant when pursued by a single individual. But if a material number of people take such actions concurrently, such aggregate efforts have the power to alter market dynamics and move the dial on climate-change mitigation. The same is true for business actions. If a critical number of companies commit to building ethical supply chains, respect for human rights and labour standards will improve worldwide. Collective action can also play a role in terms of preparing for global risks. Japan’s Community-Based Disaster Risk Management 9 and Bangladesh’s Cyclone Preparedness Program10 both demonstrate the power of collective preparedness to address inevitable environmental risks and how communities can be mobilized to mitigate their impacts. Borne out of the necessity to prepare for environmental risks in one of the most seismically active regions in the world, a 25 0 50 75 100 Share of respondents (%)53% 52% 50% 38% 37% 34% 33% 30% 30% 29%Labour shortages Unemployment Disruptions to a systemically important supply chain Economic downturn Lack of economic opportunity Asset bubble bursts Cyber insecurity PollutionConcentration of strategic resources Technological power concentrationTop global risks adressed by Corporate strategies FIGURE 3.3 Source World Economic Forum Global Risks Perception Survey 2023-2024."Which approach(es) do you expect to have the most potential for driving action on risk reduction and preparedness over thenext 10 years?" Risk categories Economic Environmental Geopolitical Societal Technological NoteRespondents could select up to three responses from the following nine options: Financial instruments, National and local regulations, Minilateral treaties and agreements, Global treaties and agreements, Development assistance, corporate strategies, Research & development, Public awareness and education, Multi-stakeholder engagement.Corporate strategies (e.g. ESG reporting, resilient supply chains, social initiatives, PPPs) Global Risks Report 2024 89