Marsh and its MMC sister companies have played an active role in the World Economic Forum’s (WEF) Global Risk Network (GRN), which seeks to identify major global risks, assess their economic impact, and develop mitigation solutions. The risks identified by the GRN are global in scope, have cross-industry implications, and significant economic and social impact.

For the past three years, we have partnered with the WEF and organizations such as Swiss Re, Zurich Financial Services, and the University of Pennsylvania's Wharton School Risk Center to produce the Global Risks Report. This report captures the findings of the GRN, and:

• Examines 23 core global risks to the international community over the next decade
• Provides an assessment as to whether or not each risk is on the rise or decline
• Sets out some scenarios around specific risks
• Focuses on ways to improve risk management and mitigation
• Provides recommendations for innovative steps to be taken at a global level

This year's report highlights the need for new thinking and concerted action in a number of problem areas. It expresses fears that the current liquidity crunch will spark a U.S. recession in the next 12 months, and calls for new thinking on systemic financial risk in response to the revolution in financial markets over the last two decades. The report recommends a set of principles for country risk management and examines how the financial sector might take on an increasingly important role in risk transfer in the future.

The report also warns that food security will become an increasingly complex political and economic problem over the next few years, with issues of equity and trade offs between security and other issues making the design of global policy both difficult and necessary. Greater cooperation on managing vulnerabilities associated with cross-border supply chains and concentrations of production may also be needed. Finally, with the dollar price of oil at record highs, the report recommends an improved approach to securing viable energy supplies in the years ahead.

Register to read this report in its entirety.