Failure of cyber security measures and extreme weather events are the first and second biggest worry for Australian executives, according to the World Economic Forum (WEF) annual Global Risks Report.

Climate action failure placed third in the top-five risk list, followed by infectious diseases and debt crises in large economies.

Globally the leading risks are climate crisis, growing social divides, heightened cyber risks and an uneven global recovery, as the covid pandemic lingers on.

The report is produced in partnership with Marsh McLennan, Zurich Insurance Group and SK Group of South Korea. It includes an executive opinion survey in which respondents were asked to identify five risks that will pose a critical threat in the next two years.

Executives in the UK, Ireland and New Zealand also listed cyber security failures as the top risk.

“Growing digital dependency over the last 20 years has drastically shifted how businesses function, with covid accelerating many organisations’ digital transformation strategies,” Marsh Head of Risk Management Asia & Pacific Scott Leney said.

“Cybersecurity threats continue to grow, ransomware attacks in particular continue to increase in frequency, severity and sophistication impacting organisations of all size and industries and outpacing our ability to effectively prevent or respond to them.”

On extreme weather risk, Mr Leney says iincreasing natural catastrophes, impact to food and water supplies and environmental legislation are impacting businesses, particularly in rural settings where farm enterprises have been hard-hit by La Nina-generated flooding events.

He says the ability to anticipate, measure and manage climate risks will be a critical advantage as the low-carbon transition unfolds and as climate change gathers pace.

Click here for the report.