Economic imbalances, volatile commodity prices and currencies, and severe budget deficits are just some indicators of the continued systemic vulnerability that could severely challenge economic recovery. Less visible are the ties supporting the global economy and linking commercial supply chains, technological systems, and complex investment vehicles. Unanticipated events such as natural disasters or malicious attacks could disrupt these critical systems and produce shocks that reverberate around the world.
These issues are examined in a new report, Future Global Shocks: Improving Risk Governance, from the Organisation for Economic Co-operation and Development (OECD). The report, developed with the sponsorship of Oliver Wyman's Global Risk Center, specifically examines the causes, pathways, and implications of global shocks that can have significant and lasting impacts on businesses and their global supply chains.
To better understand and govern the impacts of global shocks, many steps must be taken at the national and international policy level. However, businesses must also be attuned to the potential impacts of future global shocks and the underlying trends that are supporting their development and transmission. Reports such as this help drive senior-level analysis and can support dialogues regarding critical issues such as:
- Where are the organization's vulnerabilities to systemic shocks?
- What are the key vulnerabilities in supply chain and value creation?
- How are globalization trends and the evolving global economies and societies changing your organization's risk profile?