Geopolitical risks outweigh economic threats for the first time in the 10-year history of the World Economic Forum’s Global Risks report.

Conflict between states, extreme weather events and failures of national governance, such as through corruption or crime, are the leading worldwide risks identified by 900 leaders from government, business, academia and the community sector.

In terms of impact, they rate water crises, the spread of diseases such as Ebola and weapons of mass destruction as the greatest risks.

A forum by Marsh & McLennan, one of the survey sponsors, has heard greater global interconnectedness means volatility is increasing.

Marsh Risk Consulting GM Pacific Costa Zakis says businesses must manage their exposures to emerging risks, so companies can react, as well as capitalise on opportunities.

While the report identifies global risks, companies can build local connections and collaborate to deal with threats, he says.

“Use the Global Risks report to challenge your strategy. Use the scenarios to see what it actually means and how you can build a business that is resilient and can manage interruption.”

The report identifies failure to adapt to climate change, extreme weather and natural catastrophes as major environmental risks, while water and food crises, disease and large-scale involuntary migration are leading societal threats.

Conflicts and state collapses or crises are major geopolitical risks, and unemployment or underemployment and fiscal crises are the top economic dangers.

Cyber attacks are listed as the leading technological threat.

The research was conducted between July and September last year.