WEF: The Top Risks Facing Supply Chains in 2025

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The World Economic Forum has unveiled its Global Risks Report 2025
WEF's report identifies state-based armed conflict as the most immediate global risk for 2025, followed by disinformation and environmental issues

The World Economic Forum’s 20th Global Risks Report highlights a fractured global landscape increasingly defined by geopolitical, environmental, societal and technological challenges.

These growing complexities pose significant risks not only to global stability but also to the resilience of global supply chains that depend on cooperation, trust and predictability.

While economic risks are less prominent in the immediate survey results, their interconnectedness with societal and geopolitical tensions cannot be ignored. Clearly, supply chain professionals must prepare for ripple effects as these challenges unfold.

Immediate concerns for 2025

WEF's report identifies state-based armed conflict as the most immediate global risk for 2025, with nearly a quarter of respondents citing it as the most severe challenge. Such conflicts disrupt trade routes, impact critical resources and destabilise regional supply networks.

State-based armed conflict is identified as the most immediate global risk for 2025 by the WEF. Picture: Getty Images

Simultaneously, misinformation and disinformation — ranked as a top short-term risk for the second year running — undermine trust, fuel divisions and complicate decision-making. This creates significant vulnerabilities in supply chain operations, especially in regions grappling with societal polarisation.

Other leading short-term risks include:

  • Extreme weather events: Already disrupting global logistics and manufacturing.
  • Cyber-espionage and warfare: Threatening supply chain data security and operational continuity
  • Resource shortages and societal instability: Straining supply chain efficiency and resilience.

Environmental risks

Environmental risks dominate the longer-term outlook.

From extreme weather events to biodiversity loss and ecosystem collapse, the effects on raw material availability, production hubs and transport infrastructure are anticipated to intensify.

The report also highlights pollution as both a short- and long-term risk, reflecting growing recognition of its impact on human health, ecosystems and regulatory environments.

With regulatory pressure mounting to decarbonise supply chains and reduce environmental footprints, organisations must adopt sustainable practices to future-proof operations.

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Technological risks in a connected world

In the decade ahead, technological risks — particularly those tied to misinformation, disinformation and the adverse outcomes of AI technologies — present another layer of complexity.

Supply chain leaders must balance the potential of AI-driven innovations with the risks they pose, including algorithmic bias, ethical concerns and cybersecurity vulnerabilities.

Summarising the findings, Mirek Dušek, Managing Director at the World Economic Forum, says: "Rising geopolitical tensions, a fracturing of global trust and the climate crisis are straining the global system like never before.

"In a world marked by deepening divides and cascading risks, global leaders have a choice: to foster collaboration and resilience or face compounding instability. The stakes have never been higher."

Insights for resilience

The report, based on insights from more than 900 global risks experts, policy-makers and industry leaders, underscores the fragility of international collaboration.

With almost two-thirds (64%) of respondents expecting a fragmented global order by 2035, supply chain stakeholders must navigate an increasingly turbulent environment.

The top 10 risks in 2025 as selected by WEF survey respondents. Picture: WEF

Key vulnerabilities highlighted include:

  • Strategic resource concentration: Heightening competition for critical materials.
  • Mounting debt burdens: Straining government budgets and affecting infrastructure investment.
  • Inequality and societal polarisation: Destabilising global labour markets and creating uneven recovery patterns.

All 33 risks identified in the report are expected to increase in severity over the next decade, requiring proactive and coordinated action.

A decisive decade for collaboration

WEF contends that the path forward for supply chains lies in renewed global cooperation. With multilateralism under strain and middle and great powers competing for dominance, inward-looking strategies risk exacerbating instability.

Instead, supply chain leaders must prioritise:

  1. Enhanced dialogue with partners and stakeholders: Strengthening trust and transparency across the value chain.
  2. Resilience-building strategies: Diversifying suppliers, localising critical production and investing in advanced risk monitoring technologies.
  3. Sustainable practices: Emphasising circular economies, renewable energy and reduced emissions.
Mark Elsner, Head of the Global Risks Initiative at the World Economic Forum. Picture: WEF/YouTube

Mark Elsner, Head of the Global Risks Initiative at the World Economic Forum, warns: "From conflicts to climate change, we are facing interconnected crises that demand coordinated, collective action.

“Renewed efforts to rebuild trust and foster cooperation are urgently needed. The consequences of inaction could be felt for generations to come."

For supply chain professionals, the stakes are clear: collaboration, innovation and resilience-building are no longer optional, but imperative. The next decade offers a unique opportunity to reimagine global supply chains as engines of stability, sustainability and inclusive growth.


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