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Companies risk future growth if they do not look beyond the current crisis underlines new world economic forum report Richard Elliott, Senior Media Manager, Tel.: +41 (0)22 869 1292 - richard.elliott@weforum.org Geneva, Switzerland, 18 September 2008 - The Global Risk Network of the World Economic Forum today launched its second Global Growth Risk report ahead of the Forum’s Annual Meeting of the New Champions in Tianjin, China. The report considered a number of short-term and longer-term risks to growth for both markets and corporations. The report looks at the potential short-term impact of the credit crisis and its implications beyond the financial sector for the real economy and growth across different markets and sectors. It also explores the policy paradoxes facing both central banks and regulators alike. Given the risk of contagion to the real economy and further losses, whether from consumer credit defaults, or in the US$6.3 trillion credit derivatives market, the report flags the need for regulators to take remedial action without damaging the future competitiveness of their financial centres. However, the key message of the report is that both governments and companies must look forward, beyond the current uncertainty, if they are to be in a position to mitigate risks to future growth. As Sheana Tambourgi, Head of the Global Risk Network of the World Economic Forum, says "Growing companies may actually be at an advantage in the current climate if they combine their strengths and market knowledge with a broader understanding of the risks and opportunities relating to the trends that will influence global growth." The report focuses on some of these trends, such as the economic and demographic shifts taking place in many of the leading growth markets, such as China and India; the need for agreement and action sustainable resources management, from energy to water and arable land and some of the factors influencing the search for innovative models and technological solutions. The report concludes that at government and corporate level, business must keep it eye on the long term and that the two will have to work together with other stakeholders if they are to prepare for coming risks. As summed up by Sam A. DiPiazza Jr, Chief Executive Office of PricewaterhouseCoopers International Limited and a mentor to the upcoming Annual Meeting of the New Champions 2008, "Companies are increasingly looking for innovative, collaborative approaches to mitigate the impact of global risks, whether through partnerships with the public sector or with other businesses that can share in the successes of effective risk mitigation." The report was written by the Global Risk Network of the World Economic Forum in collaboration with PricewaterhouseCoopers and draws on interviews with international and regional business leaders and experts as well as publicly available research and articles. Note to Editors
For information about the World Economic Forum’s Annual Meeting of New Champions 2008 in Tianjin, China, 26-28 September, please visit
http://www.weforum.org/newchampions
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