Knowledge Nugget | WEF Global Risks Report 2026: Top risks faced by the world and India

Key Takeaways:

1. The report analyses global risks through three timeframes to support decision-makers in balancing current crises and longer-term priorities. It explores risks in the current or immediate term (in 2026), the short-to-medium term (to 2028) and in the long term (to 2036). 

2. According to the report, uncertainty is the defining theme of the global risks outlook in 2026. As global risks continue to spiral in scale, interconnectivity and velocity, 2026 marks an age of competition. As cooperative mechanisms crumble, with governments retreating from multilateral frameworks, stability is under siege.

3. Notably, geoeconomic confrontation tops the Global Risks Perception Survey 2025-2026 (GRPS) ranking this year over both the immediate-term and the two-year time horizon, rising eight positions compared to last year in the latter ranking.

4. According to the report, “Heightened geoeconomic confrontation is both a cause and a consequence of the growing vacuum being left by the weakening of multilateral institutions. As a unipolar world shifts towards a more multipolar one, a new competitive order is emerging. With fewer multilateral constraints on unilateral action, rising national barriers and clashing interests could have negative economic and social repercussions across the globe.”

5. A related risk, State-based armed conflict, which topped the immediate-term risk list last year, is in second place in the GRPS this year, and at #5 in the two-year outlook. These two risks are closely interlinked, with escalation in the severity of one also affecting the other. 

Global risks ranked by severity, short term (2 years) and long term (10 years). (Source: Global Risks Report 2026 by WEF)

6. The report highlights a stark contrast between immediate pressures and long-term dangers, with environmental risks being displaced by geopolitical, societal, and economic concerns in the short-term rankings.

7. In the long term (up to 2036), extreme weather events tops the list as the  most significant identified risks followed by biodiversity loss and ecosystem collapse, Critical change to Earth systems , Misinformation and disinformation and Adverse outcomes of AI technologies etc. 

8. The report defines extreme weather events as the loss of human life, damage to ecosystems, destruction of property and/or financial loss due to extreme weather events. 

Major risks faced by India

1. As per the report, cyber insecurity is the major risk faced by India, which is followed by the other risks such as inequality (wealth, income), insufficient public services and social protections (incl. education, infrastructure, pensions), and economic downturn (e.g., recession, stagnation), state-based armed conflict (proxy, civil wars, coups, terrorism, etc.)

Top five risks identified by the Executive Opinion Survey (EOS) 2025. (Source: Global Risks Report 2026 by WEF)

2. The report defines cyber insecurity as the state of vulnerability in digital systems, either accidental or deliberate in nature, that can be exploited by cybercriminal or malicious actors. 

About World Economic Forum

1. The WEF is a Swiss nonprofit foundation established in 1971, based in Geneva, Switzerland. It is recognised by the Swiss authorities as an international institution for public-private cooperation. The Founder and Executive Chairman of WEF is Klaus Schwab.

2. WEF is committed to improving the situation of the world by engaging business, political, academic, and other leaders of society to shape global, regional, and industry agendas.

3. Some of the major reports published by WEF are: Energy Transition Index, Global Competitiveness Report, Global IT Report (WEF along with INSEAD, and Cornell University publishes this report), Global Gender Gap Report, Global Risk Report, Global Travel and Tourism Report.

BEYOND THE NUGGET: Other Reports and Indices by WEF

Global Gender Gap Report 2025

1. The 19th edition of the Global Gender Gap Report 2025 was published by the World Economic Forum with the global gender gap at 68.8 per cent for 148 countries, marking the strongest annual advancement since the COVID-19 pandemic.

2. The report shows that across all dimensions in 2024, the gender parity has risen, and in 11 of the 14 indicators, marking a notable acceleration from last year’s result. No country has yet achieved full gender parity.

3. The Global Gender Gap Index is released annually by the WEF. It was first introduced in 2006 to benchmark the current state and evolution of gender parity across four key dimensions:

(i) Economic Participation and Opportunity

(ii) Educational Attainment

(iii) Health and Survival

(iv)  Political Empowerment.

4. The index lies between 0 and 1, with 1 denoting complete parity. The gender gap is the distance from full parity. Iceland retains the world’s most gender-equal economy for the 16th consecutive year, closing 92.6% of the gender gap – the only economy to reach 90% parity- followed by Finland, Norway, the United Kingdom, and New Zealand.

5. India has ranked 131 out of 148 countries, slipping two places from its position last year. Bangladesh emerged as the best performer in South Asia, jumping 75 ranks to rank 24 globally. 

Energy Transition Index 2025

1. Global progress towards secure, equitable, and sustainable energy systems has accelerated significantly, reversing years of slow advancement, according to the WEF.

2. In 2025, 65 per cent of countries improved their Energy Transition Index (ETI) scores, with 28 per cent advancing across all three core dimensions: security, sustainability, and equity.

3. Sweden, Finland, Denmark, Norway, and Switzerland topped the list, excelling in energy diversification, clean energy adoption, robust policies, and reliable infrastructure. India stands at 71st position with an ETI score of 53.3. 

Post Read Question

Which of the following gives ‘Global Gender Gap Index’ ranking to the countries of the world? (UPSC CSE 2017)

(a) World Economic Forum

(b) UN Human Rights Council

(c) UN Women

(d) World Health Organization

(Sources: http://www.weforum.org, UPSC Essentials: One word a day- World Economic Forum, Top 10 countries fostering effective energy transition in 2025)

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