Are businesses in tune with real risks?

The recent Global Risks Report 2023* by the World Economic Forum in partnership with Marsh McLennan and Zurich Insurance highlighted the multiple areas where the world is at a critical inflexion point.

The world’s collective focus is being channelled into the “survival” of today’s crisis: with cost of living, social and political polarization, food and energy supplies, tepid growth, and geopolitical confrontation, amongst others, being of primary concern.

It is no surprise then that environmental risks continue to dominate the ranking in both the short-term (2 years horizon) and long-term (10 years horizon). The world’s glaciers** are in serious trouble; climate actions*** are falling short.

Businesses that do not adapt will be at risk, while those that embrace change will see greater opportunities. This is a call to action to shape better resilience and stability and there is no excuse not to act.

It is clear that climate impact and risk have escalated to the top of the list, and feature among the 5 biggest impactors to both governments and businesses.

At Creador CxG (Creador Multiplies Good & Growth), we are focused on making our portfolio companies consider the physical and transitional risks which are looming, which can have material impact on their business. These conversations, and the actions emanating from it, are being dialled up.

With the ongoing Chinese New Year festivities come the wish that we will see the Year of the Rabbit bring prosperity to all, as well as greater progress in this area. Wishing everyone “Gong Xi Fa Chai” and a wonderful celebration.