This is the 2019 update of the Cambridge Global Risk Index. The Global Risk Index compiles the impacts of 22 types of threats into a single, annual measurement of economic loss. Cyber risk has seen a rise from seventh to sixth place among global threats in this year’s Index.
Overview
The research by the Centre for Risk Studies is unique in making an annual qualification of the potential GDP impact of unpredictable shocks on the world’s most prominent cities. The 2019 update to the Global Risk Index sees a uniform rise in GDP@Risk across all the 279 cities that make up the index and more significant increases in risk for urban centres.
GDP@Risk is a calculation of each city’s economic output and its exposure to particular threats associated with its geography and type of economy offset by its resilience in recovering from them. The highlights of the 2019 update include the continued rise of cyber attack risk, the continued likelihood of commodity price volatility, and sustained levels of high risk from geopolitical events and financial crises.
Overall, the Centre for Risk Studies’ analysis shows a 5.6% increase in GDP@Risk from 2018 to 2019. GDP@Risk is a calculation of each city’s economic output and its exposure to particular threats associated with its geography and type of economy offset by its resilience in recovering from them.