Economic and social fallout from COVID-19 will make it harder to tackle a range of key threats from climate change to cyberattacks, according to the World Economic Forum’s Global Risks Report 2021, published Tuesday.

While the WEF has warned about pandemic risk for 15 years, 2020 saw the effects of ignoring preparation and long-term risks, the report found.

The report, based on a survey of more than 650 risk experts, found some 58% of respondents view infectious diseases as a critical threat in the next two years.

Livelihood crises, extreme weather events, digital inequality and youth disillusionment are among other critical threats, the report found.

Threats of particular concern in the next three to five years include asset bubble bursts, IT infrastructure breakdown and price instability, while weapons of mass disruption, state collapse and biodiversity loss lead the list of long-term risks, the report found.

Environmental risks continue to dominate concerns in terms of impact and likelihood in the next decade, according to the report, which the WEF produced in conjunction with strategic partners Marsh & McLennan Cos. Inc. and Zurich Insurance Group Ltd.

“The biggest long-term risk remains a failure to act on climate change. There is no vaccine against climate risks, so post-pandemic recovery plans must focus on growth aligning with sustainability agendas to build back better,” said Peter Giger, group chief risk officer, Zurich Insurance Group, in a WEF statement accompanying the report.

The report found the top five risks in terms of likelihood are:

·     Extreme weather

·     Climate action failure

·     Human environmental damage

·     Infectious diseases

·     Biodiversity loss

The top five risks in terms of impact are:

·     Infectious diseases

·     Climate action failure

·     Weapons of mass destruction

·     Biodiversity loss

·     Natural resource crises

Economic and societal fallout from COVID-19 will profoundly impact the way organizations interact with clients and employees long after any vaccine rollout, Carolina Klint, risk management leader, Continental Europe, Marsh LLC, said in the statement.

“Rapid digitalization is exponentially increasing cyber exposures, supply chain disruption is radically altering business models, and a rise in serious health issues has accompanied employees’ shift to remote working,” Ms. Klint said.

With the world more attuned to risk, there is an opportunity to “leverage attention and find more effective ways to identify and communicate risk to decision-makers,” the report said.

Lessons from COVID-19 offer an opportunity for mitigation, including positioning “risk champions” before the “frenzy of the next crisis,” the report said.