In Central Asia and Russia people worry about fiscal crises which is the top-1 risk in Azerbaijan and Russia and is among the top-5 of highest concern in all the countries of the regions. It is followed by unmanageable inflation, mentioned among the top-5 in 6 out of the 7 economies considered (in all countries except Armenia where the risk ranks number 8). Unemployment and underemployment as well as interstate conflicts also feature high on the list, especially in Armenia, Azerbaijan and Georgia. Environmental risks worry business leaders in East Asia and the Pacific, especially in the Philippines (the top-1 risk is extreme weather events), New Zealand (the top-1 risk is natural catastrophes) and Vietnam (the top-1 risk is man-made environmental catastrophes). Asset bubble is the risk of highest in 6 countries (Cambodia, China, Myanmar, Hong Kong, Australia and Thailand), followed by cyberattacks in top-1 risk in 3 economies of the region (Malaysia, Japan and Singapore). Energy price shock is among the top-5 risks in 12 economies. In South Asia, concerns include energy prices and failure of national governance which both feature among the top-5 risks in 4 out of the 6 economies covered in the region (respectively in Pakistan, Sri Lanka, India and Bangladesh and in Bangladesh, Pakistan, Nepal and Sri Lanka). Fiscal crises, together with unemployment or underemployment and failure of climate-change adaptation are high on the list and are among the top-5 risk of highest concern in 3 economies.
Executives in the Middle East and North Africa are also worried about energy prices, together with unemployment and fiscal crises. While each of the three risks are among the top five risks of highest concern for doing business in 10 out of the 14 economies of the region, energy price shock tops the ranking in nine economies.
Terrorist attacks and interstate conflict are also a major concern. In sub-Saharan Africa, the business community’s top concerns include unemployment and underemployment which is the top risk in more than half of the economies of the region, along with energy price shock and failure of national governance. The relatively poor state of infrastructure is also of high concern as illustrated by the risk failure of critical infrastructure which is among the top five risks in 15 economies – despite not being the top concern in any country – and the risk of failure of urban planning considered among the top five risks in 12 countries.
The identification of global risks of highest concern is a first step to taking adequate mitigation measures and to build resilient businesses. With the richness of the dataset on the risks of highest concern for doing business at the country-level, companies now have an additional tool to help them strengthen their resilience. Nevertheless, many risks can only be addressed through collaboration among public and private sector actors and there is a strong case for businesses to join in partnerships with the public sector.
