Overview
WESR: Risk is an analytical tool that examines global environmental and societal risks and their potential economic consequences. It focuses on systemic risks, interconnections and long-term trends rather than short-term shocks. Finance professionals may find it relevant for understanding how sustainability-related risks can affect portfolios, markets and financial stability.
Organisation behind the tool
The tool is developed and maintained by the World Economic Forum. It forms part of the Forum’s broader work on global risks, systems thinking and sustainability-related risk analysis.
What the tool does
- Identifies key environmental and societal risk drivers at a global level.
- Explores interlinkages between risks, including cascading and compounding effects.
- Presents structured risk themes and qualitative assessments of potential impacts.
- Provides contextual explanations linking environmental and social risks to economic outcomes.
- Supports high-level risk screening rather than asset-level or quantitative modelling.
Target audience
The primary audience includes financial institutions, policymakers and sustainability professionals. It is also relevant to researchers, corporates and international organisations working on risk, resilience and long-term planning.
Relevance to finance professionals
- Risk assessment – supports identification of systemic and non-diversifiable risks that may affect financial stability, portfolios and long-term asset values.
- ESG analysis – provides context on environmental and social risk drivers relevant to materiality assessments and ESG integration.
- Market and sector insights – helps frame exposure of sectors and regions to interconnected sustainability risks.
- Investment context – informs long-term strategic thinking on macro-level trends, transition risks and structural changes affecting investment outcomes.
