Connect with us

News

WEF Releases Framework to Help Investors Address Six Global Risks

Published

on

The World Economic Forum has identified six systemic risks and established a governance framework to enable the investment community to address an investment gap of $6.27 trillion per year required to mitigate these risks. The risks include water security, climate change, population growth, geopolitical uncertainty, negative interest rates and technology disruption.

“Transformational Investment: Converting Global Systemic Risks into Sustainable Returns”, provides new insights to ensure that the long-term impact of non-traditional risks and opportunities can be better understood. It’s particularly important for investors to consider these ongoing risks now in order to have good responses to address the current economic crisis.

“The COVID-19 pandemic has altered the global economy in unprecedented ways,” says Maha Eltobgy, Head of Investing, World Economic Forum. “The pandemic has impacted capital markets, liquidity, the financial stability of entire industries and even challenged the fiscal solvency of governments. The Transformational Risk framework offers investors a new way to analyse systemic risks in the 21st century.”

The six systemic risks for asset holders, drawn from the Forum’s Global Risks Report 2020, will require over $6.27 trillion of investments per year to address. These include opportunities to invest in renewable energy, food production, infrastructure, education and more.

Governments, corporations and insurers are often the “funding entities” for long-term, diversified investment programmes. So, challenges to the financial standing of these funding entities can alter the liquidity budget, risk tolerance and investment time horizon of the world’s largest asset owners.

The framework recently developed for evaluating and incorporating global systemic risks into investment programmes can also act as a guide when addressing the risks created by the COVID-19 pandemic, or to help mitigate the risk of future pandemics.

Decision-making framework

In the study of these complicated global risks, the World Economic Forum and Mercer, who collaborated together for this white paper, propose a six-step framework to help investors navigate these challenges.

“Asset owners face an evolving set of long-term risks and challenges, accompanied by opportunities for transformational investment. The same six-step framework that asset owners have been applying to other long term systemic risks has turned out to work well when applied to the COVID-19 pandemic and its associated impact on the economy, society and financial markets,” said Rich Nuzum, President of Investments and Retirement at Mercer. “Disciplined, agile governance and implementation arrangements are being applied by the world’s leading investors to help mitigate systemic risks, while simultaneously enabling the pursuit of attractive expected returns.”

A roadmap and decision-making framework for governance

  • Understand – the overall impact on the funding entity, objectives and beneficiaries
  • Collaborate – with similarly situated organizations that are concerned about the same risks and opportunities
  • Design – governance, policies, delegation and accountabilities for material systemic risks
  • Invest – to manage the portfolio’s exposure to the global systemic risk
  • Transform – through driving investment strategy that delivers change
  • Monitor – and revisit; apply learnings to improve policies and processes

Case studies indicate that sovereign wealth funds and other long-term investors are already positioning themselves to respond to the impact of these global systemic risks on investment. However, greater innovation in practice and commonality of action are still required in most areas.

The World Economic Forum will continue to research ways that investors and other asset holders can pursue stakeholder capitalism.

Continue Reading
Comments

Tech News

Deloitte Bolsters Cyber Threat Hunting Capabilities with Root9B Acquisition

Published

on

Deloitte & Touche LLP announced today its acquisition of substantially all the assets of Root9B, LLC (R9B), a leading provider of advanced cyber threat hunting services and solutions. The deal will bolster Deloitte’s existing Detect and Respond cyber client offering with R9B’s deeply experienced cyber operations professionals and its award-winning threat-hunting and risk assessment solutions.

“Commercial and government entities contend with cyber adversaries who use incredibly sophisticated technology to penetrate legacy defenses and take advantage of expanding attack surfaces,” said Deborah Golden, Deloitte Risk & Financial Advisory Cyber and Strategic Risk leader and principal, Deloitte & Touche LLP. “The addition of R9B’s business will expand our complement of skilled cyber professionals and leading technologies, while also offering our clients an advantage against adversaries.  Our newly combined powerful and innovative solutions for preventing, detecting and mitigating cyber threats are unlike anything we’ve seen available in today’s market.”

Beyond offering tailored managed services and solutions focused on cyber threat hunting/detection and response focusing on unique organizational needs, R9B also offers tech-enabled vulnerability assessment and penetration testing, defense forensics and incident response, as well as defensive security and hunt operator training.   

With the addition of R9B’s business, Deloitte’s Cyber Detect and Respond offering will continue to help clients gain a leading edge in cyber defense, integrate fragmented security toolsets, achieve efficiencies in security operations programs, accelerate response time to potential threats and provide data-driven threat insights. 

“Deloitte continually works to provide outstanding value to our clients,” said John Peirson, Deloitte Risk & Financial Advisory CEO.  “Adding R9B’s business to our existing cyber practice is just one more way we’re accelerating meaningful investments into the innovative approaches we offer our clients as they work to manage emerging threats.” 

R9B founder and CEO Eric Hipkins added, “Our shared commitment to our clients’ missions and recognition of the importance of combining exceptional technology, people and processes to solve the most challenging security problems of our day makes joining Deloitte a logical next step in our story. At Deloitte, we’ll be able to accelerate scaling and development of offerings we consider vital to proactive cyber threat hunting and remediation.” 

Continue Reading

Human Rights

WEF Launches Coalition to Tackle Racism in the Workplace

Published

on

The World Economic Forum has today launched the Partnering for Racial Justice in Business initiative, which will see a coalition of organizations commit to building equitable and just workplaces for professionals with under-represented racial and ethnic identities.

The Partnering for Racial Justice in Business initiative has been designed to operationalize and coordinate commitments to eradicate racism in the workplace and set new global standards for racial equity in business. It also provides a platform for businesses to collectively advocate for inclusive policy change.

What action looks like

Three steps are required to join the initiative:

  • Racial and ethnic equity must be placed on the board’s agenda
  • Companies must make at least one commitment towards racial and ethnic justice in their organizations
  • Companies must put a long-term strategy in place towards becoming an anti-racist organization

Examples of business commitments towards racial and ethnic justice range from allocating financial and human resources to racial justice work, setting representation goals for all seniority levels, and establishing mentorship programmes for racially and ethnically diverse employees.

One of the initiative’s starting points will be Black inclusion and addressing anti-Blackness. A broad-brush approach to racism fails to grasp its effects on different under-represented groups. Anti-Black racism is historically one of the most pervasive forms of racism. As such, a targeted and specific approach to tackle it in the workplace is required. As the initiative evolves, it will seek to increase the visibility of racially and ethnically diverse leaders throughout industries, and expand its focus to include additional racial and ethnic groups.

“With just 1% of Fortune 500 companies led by Black chief executives, the need to tackle racial under-representation in business is urgent and obvious. To design racially and ethnically just workplaces, companies must confront racism at a systemic level, addressing not just the structural and social mechanics of their own organizations, but also the role they play in their communities and the economy at large. The Partnering for Racial Justice in Business initiative provides an effective platform for businesses to take individual and collective action towards racially and ethnically just workplaces,” said Saadia Zahidi, Managing Director at the World Economic Forum.

The initiative originates from the World Economic Forum’s New Economy and Society Platform, which is focused on building prosperous, inclusive and just economies and societies. In addition to its work on economic growth, revival and transformation, work, wages and job creation, and education, skills and learning, the Platform takes an integrated and holistic approach to diversity, equity, inclusion and social justice, and aims to tackle exclusion, bias and discrimination related to race, gender, ability, sexual orientation and all other forms of human diversity. It produces data, standards and insights, such as the Global Gender Gap Report and the Diversity, Equity and Inclusion 4.0 Toolkit, and drives or supports action initiatives, such as the Community of Chief Diversity and Inclusion Officers, The Valuable 500 – Closing the Disability Inclusion Gap, Hardwiring Gender Parity in the Future of Work, Closing the Gender Gap Country Accelerators, Partnership for Global LGBTI Equality and the Global Future Council on Equity and Social Justice.

Founding members

The founding members of the initiative are: A.P. Møller-Maersk, AlixPartners, AstraZeneca, Bank of America, BlackRock, Bloomberg, Boston Consulting Group, Bridgewater Associates, Centene, Cisco Systems, Cognizant, Dentsu International, Deutsche Bank, EY, Facebook, Google, H&M Group, Henry Schein, HP, Infosys, Ingka Group (IKEA), Jacobs Engineering Group, Jefferson Health, Johnson & Johnson, Kaiser Permanente, Kearney, LinkedIn, ManpowerGroup, Mastercard, Mayo Clinic, McKinsey & Company, Microsoft, Nestlé, PayPal, PepsiCo, Procter & Gamble, PwC, Salesforce, SAP, Standard Chartered Bank, Tata Consultancy Services, The Coca-Cola Company, Depository Trust & Clearing (DTCC), Thermo Fisher Scientific, Uber Technologies, Unilever, UPS and Willis Towers Watson.

“This initiative is an important step in helping accountable business leaders do more to change the foundational systems that interfere with achieving equity. Kaiser Permanente is taking bold actions within our organization to evolve and advance our equity, diversity and inclusion strategy, and we look forward to being part of this coalition, both to help its work and learn from others.” — Greg A. Adams, Chairman and Chief Executive Officer, Kaiser Permanente

“At IKEA, we side with the many, and we believe that a better every day is also an equal every day. We are committed to create a fair and equal workplace for everyone, no matter their ethnicity, race or nationality. We see three main reasons: It is about fairness, it’s about reflecting the diversity of our customer base to meet the dreams and needs of our customers in better ways. And finally, it opens up more and new opportunities to attract and recruit the best talents. By working together with the Forum and other businesses we hope to accelerate the pace and scale of change to create more fair and just workplaces and society.” — Jesper Brodin, Chief Executive Officer, Ingka Group (IKEA)

“The new global standards established by Partnering for Racial Justice in Business come at a time of heightened global focus on racial injustice, underscored by a pandemic that has disproportionately affected Black and Latino communities in the United States, along with other marginalized communities worldwide. We believe companies – critical enablers of wealth creation and professional mobility – must play a leading role in building a more equitable future for all. And as an organization that exists to create economic opportunity for the entire global workforce, we are honoured to join this initiative.” — Rosanna Durruthy, Global Head of Diversity, Inclusion, and Belonging, LinkedIn

“At P&G, we aspire to create a company and a world where equality and inclusion are achievable for all people. For us, this starts with ensuring equitable and inclusive workplaces, and drives the actions we take with our brands and business partners and throughout communities around the world. The Forum’s Partnering for Racial Justice in Business initiative will help foster cross-sector collaboration towards this aspiration and enable P&G and many companies to accelerate progress faster than any of us could do alone, and we’re proud to lend our support.” — Shelly McNamara, Chief Equality and Inclusion Officer, Procter & Gamble

“In order to have an economy that works for everyone, we all have an obligation to address the inequalities that have existed for too long; that includes systemic racism. At Mastercard, we believe that our success comes by ensuring decency, well-being and inclusion are part of everything we do. Bringing together groups like this creates the potential for greater impact, accelerating our ability to learn from one another and deliver action at scale.” — Michael Miebach, Chief Executive Officer, Mastercard

“As a global organization that runs with purpose, we will only have done our jobs if we create opportunities for every employee to flourish and for social justice to prevail. We must understand the role we play, the things we can do better, and the actions we can take to ensure equality for all. Let our work together be a shining example of the change we are advocating.” — Judith Williams, Head of People Sustainability and Chief Diversity and Inclusion Officer, SAP

Continue Reading

Health & Wellness

Pandemic will not end for anyone, ‘until it ends for everyone’

Published

on

The COVID-19 pandemic “will not end for anyone, until it ends for everyone”, an independent UN human rights expert said on Friday, advocating for an equitable and globally-coordinated vaccine distribution programme. 

“The virus can still travel from the vastly unvaccinated massive population of the Global South to the Global North, including in its increasingly mutating forms”, Obiora Okafor, UN Special Rapporteur on human rights and international solidarity, said in a statement

He explained that with mutations constantly evolving, only inoculating rich countries would likely “complicate or delay” the eradication of the virus. 

Skewed vaccine delivery 

The last few weeks of 2020 witnessed the approval of several COVID-19 vaccines by regulators in various countries, “offering much hope to billions of people worldwide”, according to the UN expert.  

And while several States, mostly in the north, have already secured large quantities of vaccine and have begun inoculation campaigns, this has not been the case for most of the Global South, where close to 90 per cent of the world’s population lives. 

“The world, therefore, faces a sharp and highly problematic vaccine-divide in which the much richer Global North States, which host a very small percentage of the global population, have so far cornered the vast majority of available COVID-19 vaccines, leaving the bulk of the world’s population with almost no access to these medicines”, Mr. Okafor said.  

“A globally coordinated vaccine distribution programme is highly preferable to the individualized approaches adopted by all-too-many of the richer States”, Mr. Okafor said. 

International vaccine solidarity  

He said it was vital that States and non-State actors cooperate – such as through the COVID-19 Vaccine Global Access Facility (COVAX), which, led by the World Health Organization (WHO), is part of the Access to COVID-19 Tools (ACT) Accelerator – or risk a stalled recovery. 

While noting that COVAX aims to fairly distribute two billion vaccine doses by the end of 2021, Mr. Okafor emphasized that “international vaccine solidarity” be favored over “international vaccine competition”. 

“Given the great urgency of ensuring for everyone, everywhere, as rapid and effective access to COVID-19 vaccines as possible, I, therefore, urge urgent and strong action by States and other actors toward a course correction”, he said. 

Click here for the names of the UN experts who endorsed the statement. 

Fair access for migrants 

Separately, UN independent experts González Morales and Tlaleng Mofokeng have urged States to ensure that migrants are also included in national COVID vaccination programmes, saying that global immunization access for everyone who needs them “is the only solution” to ending the pandemic. 

This includes priority groups of vulnerable people “regardless of who they are” or their migration status, said the rights experts. 

They also called on world leaders to refrain from discriminatory discourse that could lead to the exclusion of migrants in irregular situations from the global public health response. 

Special Rapporteurs and independent experts are appointed by the Geneva-based UN Human Rights Council and are neither UN staff nor paid for their work.  

Continue Reading

Publications

Latest

Tech News10 mins ago

Deloitte Bolsters Cyber Threat Hunting Capabilities with Root9B Acquisition

Deloitte & Touche LLP announced today its acquisition of substantially all the assets of Root9B, LLC (R9B), a leading provider of...

Middle East1 hour ago

100th Anniversary of the Turkish Constitution

Teşkilatı-Esasiye Law, the law provides for the establishment of the State of Turkey on January 20, 1921. This law also...

Human Rights2 hours ago

WEF Launches Coalition to Tackle Racism in the Workplace

The World Economic Forum has today launched the Partnering for Racial Justice in Business initiative, which will see a coalition...

Economy3 hours ago

The Silk Road passes also by the sea

On December 30, 2020, China and the European Union signed an agreement on mutual investment. After seven years of negotiations,...

Reports5 hours ago

Investment in Upskilling Could Boost Global GDP by $6.5 trillion by 2030

Accelerated investment in upskilling and reskilling of workers could add at least $6.5 trillion to global GDP, create 5.3 million...

South Asia7 hours ago

Saga of Indian Disinformation Campaign

In December 2020, the EU Disinfo Lab made revelations in its report on the “widespread Indian network of subversive activities” vindicated Pakistan’s...

Economy9 hours ago

Major impediments to Pakistan’s economic growth

Pakistan’s economy is, currently, faced with myriad problems.  These problems have been compounded by inconsistent and erratic economic policies followed...

Trending