Global Risks Report 2025: A GRC perspective on the World Economic Forum’s Insights

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Global Risks Report 2025 by the World Economic Forum

The annual Global Risks Report by the World Economic Forum is one of the most anticipated publications for leaders across industries, offering a comprehensive view of the challenges shaping our future. The 2025 edition, marking two decades of global risk tracking, highlights the interconnected nature of today’s most pressing issues—from geopolitical tensions and environmental crises to technological vulnerabilities.

For businesses, governments, and institutions, this era of heightened volatility underscores the critical role of governance, risk, and compliance (GRC). GRC frameworks enable businesses to move beyond reactive measures, offering the tools to anticipate risks, navigate uncertainties, and adapt to evolving challenges with agility. At Swiss GRC, we review this report with great interest each year, providing a summary and perspective to help organizations understand these risks through the lens of GRC. This article explores the key findings from the report, offering insights for leaders seeking resilience in an unpredictable world.

The State of Risk in 2025

The 2025 report outlines a global environment where risks are not just escalating but are deeply interconnected. The interplay of geopolitical conflicts, environmental crises, and technological vulnerabilities highlights the need for a systemic, proactive approach to governance and risk management. For businesses and leaders, these risks are both a warning and a call to action. Here are the most pressing themes shaping the global outlook:

Current Risk Landscape - Global Risks Report 2025

1. Geopolitical Fragmentation and Economic Tensions

The report’s findings highlight a world divided. State-based armed conflict has surged to the top of immediate global concerns, reflecting a deteriorating geopolitical environment driven by unresolved tensions and waning multilateral cooperation. Meanwhile, geoeconomic confrontation—manifesting through trade wars, sanctions, and resource nationalism—is creating new fault lines in the global economy.

For organizations, this geopolitical volatility is more than a headline; it’s a call to action. Businesses operating across borders face an increasingly fragmented regulatory landscape, where compliance isn’t just about avoiding fines—it’s about maintaining trust and continuity. Integrated GRC frameworks provide the tools to track and adapt to evolving regulations, helping organizations mitigate risks and protect their operations.

2. Environmental Risks: From Future Concerns to Present Realities

Environmental risks have been a consistent theme in the Global Risks Report for years, but their urgency has reached new heights. From extreme weather events to biodiversity loss and pollution, the effects of environmental degradation are no longer just long-term challenges—they’re immediate crises with cascading impacts. For businesses, this is a moment to rethink sustainability not as a “nice-to-have” but as a core component of risk management. Environmental, Social, and Governance (ESG) initiatives are increasingly integrated into GRC systems, enabling organizations to not only comply with regulations but also to lead on sustainability and resilience.

3. Cybersecurity and Technological Vulnerabilities

The digital frontier presents unparalleled opportunities—but also unprecedented risks. This year’s report underscores the challenges:

  • Supply Chain Risks: 54% of Fortune 500 companies identify supply chain vulnerabilities as a critical challenge.
  • AI Preparedness Gap: While 66% see AI transforming cybersecurity, only 37% feel prepared to secure these tools.
  • Cyber Skills Shortages: Two-thirds of organizations report critical talent gaps in their cybersecurity teams.
 

Cybersecurity is no longer an IT issue; it’s a governance priority. GRC systems enable organizations to address these vulnerabilities by embedding cybersecurity governance into broader risk management strategies. From regulatory compliance to real-time threat assessment, a robust GRC framework is key to navigating the digital age securely.

4. The Role of Technology in Misinformation and Polarization

Generative AI, while transformative, has exacerbated the spread of misinformation—a top-ranked risk for 2025. Frontier technologies like biotechnology also remain underappreciated risks, with their impacts expected to grow significantly over the next decade. Organizations that proactively integrate emerging risks into their GRC frameworks are better positioned to navigate these challenges. Monitoring technological risks and ensuring compliance with evolving regulations are essential for staying ahead in an era of rapid innovation.

The GRC Imperative: Building Resilience in a Fragmented World

The Global Risks Report 2025 highlights a critical insight: today’s challenges are deeply interconnected, requiring systemic and forward-looking solutions. Governance, risk, and compliance (GRC) frameworks are essential for navigating this complexity, enabling organizations to:

  • Connect Risks: Unify perspectives across geopolitical, environmental, and technological domains for more effective decision-making.
  • Simplify Compliance: Manage regulatory complexity across fragmented jurisdictions through integrated systems.
  • Enhance Third-Party Risk Management (TPRM): Mitigate vulnerabilities in supply chains and external partnerships, a growing priority in an era of cyber threats and regulatory pressures.
  • Drive Strategic Resilience: Embed adaptability and foresight into decision-making processes to respond proactively to volatility.
 

GRC frameworks provide a robust foundation for organizations to navigate uncertainty, strengthen resilience, and lead with confidence in a fragmented world.

Two Decades of Insights: Lessons for Today

The Global Risks Report 2025 offers more than a catalogue of challenges—it serves as a wake-up call for decisive, forward-thinking leadership. Over the past two decades, risks once considered long-term—like climate change and technological disruption—have become immediate threats. Addressing these interconnected challenges demands a shift from reactive responses to proactive governance.

Organizations that embrace integrated governance, risk, and compliance (GRC) frameworks are better positioned to navigate this complexity. By linking compliance, risk management, and strategic decision-making, GRC empowers businesses to move beyond crisis management, build resilience, and seize opportunities in a volatile world.

The future will be shaped by leaders who can see beyond the risks to the opportunities they present. For those ready to lead, adapt, and innovate, the time to act is now.

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Yahya Mohamed Mao

Yahya Mohamed Mao is a certified GRC Professional (GRCP) and heads the Marketing & Communications department at Swiss GRC. He is a regular contributor to industry publications and provides insights and expertise on current trends and innovations in Governance, Risk & Compliance (GRC), AI, Marketing and Branding.

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