Boards of directors facing the global risks of 2025

The Global Risks Report 2025, published by the World Economic Forum earlier this year, highlights the main risks that could shape the immediate future of our planet. This year marks the report’s twentieth edition, as since 2005, it has been compiling and analyzing information on events that, in terms of probability and impact, have been considered the greatest threats to global stability. More than 900 experts worldwide have shared their perspectives on global outlooks, summarizing the risks that will be the most likely and impactful in the short, medium, and long term. 

Unfortunately, as the report acknowledges, the outlook for 2025 has worsened compared to the previous year. The simultaneous deterioration of geopolitical, social, environmental, and technological factors is creating increasingly complex environments to manage. As we face a more uncertain and intricate global context, understanding and anticipating these risks is not just an option—it is a strategic necessity. 

Major global risks in 2025

The Davos 2025 Report highlights a series of global threats shaping the current landscape, with geopolitical risks ranking first. These stem from an increase in interstate armed conflicts and economic fragmentation. Both risks have climbed higher in this year’s ranking compared to the previous year, clearly due to the intensification of ongoing conflicts: Russia’s war in Ukraine marks its third anniversary, significantly impacting European stability and leading to economic sanctions against Russia that have disrupted global supply chains. Additionally, Israel’s war in Gaza, despite the ceasefire agreement reached with Hamas on January 15, continues to cause instability in the Middle East, affecting global energy price stability. 

Moreover, not only could the NATO-mandated rearmament increase military tensions between nations, but also Donald Trump’s second term and his international isolationist stance, including the withdrawal of the US from international organizations and the imposition of discriminatory tariffs, will bring significant changes to the global order. 

Kristalina Georgieva, Managing Director of the International Monetary Fund, already warned in 2023 that continued economic fragmentation and the breakdown of the multilateral trade system could result in economic losses valued between 0.2% and 7% of global GDP, posing an additional economic risk amid this geopolitical polarization. 

Second on the list are environmental risks stemming from climate change and its consequences. Rising temperatures, an increase in natural disasters, and shifting climate patterns are imminent threats. Spain, for example, has already experienced these firsthand with the devastating DANA storm that struck Valencia at the end of last year. 

Climate effects could lead to new economic and geopolitical tensions

Beyond worsening environmental conditions and rising temperatures, these climate effects could trigger economic and geopolitical tensions. According to the International Organization for Migration (IOM), climate migrants or refugees are people who, “predominantly due to sudden or progressive environmental changes caused by climate change, are forced to leave their habitual place of residence.” Today, an estimated three million people live in areas highly exposed to climate adversity. The United Nations identifies five particularly vulnerable countries: Pakistan, the Philippines, China, India, and Nigeria. Forced displacement will undoubtedly be a major challenge for nations, complicating border management. Meanwhile, businesses must better prepare for both direct and indirect impacts—from infrastructure damage to supply chain disruptions and shifts in product and service demand. 

Third, misinformation, cybersecurity, and digital threats continue to rank high in the 2025 risk assessment, reflecting an increasingly disruptive technological landscape. The rise in cyberattacks and data breaches not only threatens the technological infrastructure of organizations but also public trust and global economic stability, increasing organizational vulnerability. 

In the digital era, companies are frequent targets of cyberattacks. From data theft to operational disruptions, cybersecurity has become a fundamental priority. Organizations must invest in protective technologies, train their employees, and develop contingency plans for potential incidents. 

Potential impact on businesses and boards of directors

The Global Risks Report 2025 underscores that the threats we face are not just short-term challenges but factors that will shape the stability and future of businesses in an increasingly interconnected yet unstable world. Long-term forecasts (10-year risks) predict even greater deterioration: the percentage of experts agreeing that the world will be “stormy and turbulent” has risen from 36% to 62%. 

Global risks such as climate change, economic crises, cybersecurity threats, and rising inequality are not isolated phenomena; they are interconnected and can profoundly impact organizations worldwide. This is where the concept of a “polycrisis world”, which Adam Tooze first mentioned in his Financial Times column in 2022, seems poised to intensify even further. 

This new landscape will require boards of directors to adopt a more proactive and anticipatory approach to these threats, laying the groundwork for a more resilient, adaptive, and sustainable strategy. Beyond traditional concerns about profitability and financial sustainability, boards must now integrate sustainability and cybersecurity into their long-term strategies. This demands greater diversity in perspectives, technical skills, and international experience among board members. Implementing a standardized Risk Management System (RMS), such as ISO 31000 or similar frameworks, can provide a consistent structure for identifying and managing threats, enabling better risk assessment by the board. To mitigate these risks, boards of directors must embrace a proactive and multi-faceted approach, conducting cyclical risk assessments to ensure their companies are prepared to confront new threats. 

Organizational resilience will be key to navigating global risks

The ability to identify and manage emerging risks will be crucial to ensuring that companies not only survive but also adapt and thrive in an increasingly volatile global environment. Boards must promote a culture of resilience, fostering crisis preparedness, organizational agility, and investment in innovation to address future challenges. 

Final thoughts

One of the key lessons from this 2025 Report is that organizational resilience will be essential for navigating global risks. Resilience is not just about withstanding crises but also about anticipating, adapting, and emerging stronger. Companies that build strong resilience will not only mitigate risks but also identify opportunities amid uncertainty. Those that embrace innovation, sustainability, and new regenerative business models will stand out as pioneers in a changing global market. This is the challenge of our times—and the new mission of boards of directors.