Row rect Shape Decorative svg added to bottom WEF22 discussion - Bolstering resilience ahead of future emergencies Absa | Corporate and Investment Banking > Insights and Events > WEF22 discussion – Bolstering resilience ahead of future emergencies SHARE A report by ‘The Money Show’ Following the Covid-19 pandemic, multiple crises have risen around the globe which presents world leaders with the task of finding short-term solutions while bolstering resilience ahead of future emergencies. A worldwide microchip shortage, climate change and global food and energy crises are just a few of the issues that the world faces while recovering from two years of Covid-19-related challenges. Are we resilient enough to overcome these issues? Economic resilience refers to an economy’s ability to financially adapt and recover from an unexpected disruption, preventing economic crashes and bankruptcy. This was a major topic of discussion on Day 2 of the World Economic Forum in Davos, as panellists gave insight into the importance of having high-level resilience in place to ensure economic security in future. The complications arise when trying to plan exactly how to implement practices that will improve economic and social resilience without exceeding financial limitations. Preparation for the unexpected, but also the unlikely, is difficult to vouch for in today’s economic climate, says Roy Gori, CEO of Canadian insurance company, Manulife Financial. “It’s incredibly complex because the likelihood of these disruptions are very low, while the investment to deal with those disruptions can be very, very high” he explains. “It’s often very hard to justify investments that may be necessary for an event that may not occur.” Others pointed out that building personal resilience within an employee base can contribute to corporate resilience, in turn, contributing to economic resilience. Ngozi Okonjo-Iweala, Director-General of the World Trade Organisation encourages collaboration and communication among the leaders of the world with regards to resilience and taking measures to properly support this aspect. “Resilience means that we all have to survive together and sustain together. To do that, you cannot have resilience unless you have global solidarity.” For more coverage of key conversations during #WEF22, please keep an eye on our LinkedIn and Twitter pages. Disclaimer: The views and opinions expressed in this article are not the views of Absa. https://cib.absa.africa/wp-content/uploads/2020/07/file_example_MP3_700KB.mp3 Related Articles RISK MANAGEMENT How Finance Can Help Build More Integrated African Supply Chains If one were to speak to African suppliers who trade across borders, many would say that doing business within the continent can feel riskier than exporting beyond it. Especially for small and medium-sized enterprises (SMEs), information on counterparties is not always easy to obtain, regional currencies can be volatile and difficult to hedge, forward markets offer little depth, and access to affordable finance is often limited at precisely the moment it is needed most. Read more RISK MANAGEMENT What Bidvest’s Eurobond Tells Us About the Maturation of SA’s Debt Capital Market The international high-yield bond market functions as one of the largest and most technically evolved sources of corporate funding in the global financial system. Read more RISK MANAGEMENT Africa’s Capital Markets Are Moving Again. Here’s How. Kenyan beverages giant East African Breweries recently refinanced an existing KES 11 billion corporate bond through a medium-term note priced at 11.8%, marking the first issuance under its newly approved KES 20 billion programme. Read more
