PH ranks poorly in global risk mitigation survey

MANILA, Philippines – Despite being touted as a bright spot in Asia, the Philippines has not been able to effectively mitigate and recover from major global risks, according to a survey.

In the World Economic Forum’s (WEF) Global Risk Report 2013, the Philippines ranked 66th out of 103 economies in terms of mitigating health, economic, environment, and digital risks.

Out of 49 economies, the Philippines placed 44th in terms of recovering from these risks.

In Southeast Asia, the country ranked 3rd to the last in mitigating risks and last in recovering from these.

Singapore was the consistent number one in both areas. Venezuela was the one with the least ability to manage and mitigate global risks, while Ethiopia had the least ability to recover from these risks. 

“These global risks are essentially a health warning regarding our most critical systems. National resilience to global risks needs to be a priority so that critical systems continue to function despite a major disturbance,” WEF Managing Director and report editor Lee Howell said in a statement. 

The WEF explained that health risks include rising resistance to antibiotics amid rising chronic diseases, while risks to the economy and environment pertained to socioeconomic risks that could derail efforts to address climate change issues. 

Digital risks are due to the “democratization of information,” which, if left unchecked, has a high chance of leading to “digital wildfires” like the worldwide violent riots sparked by an anti-Islam film on YouTube.

The think tank said the report measured every country’s ability to respond and overcome these risks, taking into consideration their wealth gaps or income inequality, and government debt and fiscal imbalances. 

The WEF conducted a survey of over 1,000 experts and industry leaders, who gave a more pessimistic outlook overall for the next 10 years.

“With the growing cost of events like Superstorm Sandy, huge threats to island nations and coastal communities, and no resolution to greenhouse gas emissions, the writing is on the wall. It is time to act,” Zurich Insurance Group Chief Risk Officer Axel Lehmann said.

The survey asked respondents the questions:

• How would you assess your national government’s overall risk management effectiveness of monitoring, preparing for, responding to and mitigating major global risks (e.g. financial crisis, natural disasters, climate change, pandemics, etc.)?
• What would be your country’s capability to adapt and or recover from the national impact of a global risk?

Global Risks 2013 is the flagship initiative of the WEF’s Risk Response Network, which provides private and public sector leadership with an independent platform to build resilience by mapping, monitoring and managing global risks. – Rappler.com