What are Bangladesh’s top business risks in the coming decade?

A recent survey conducted by the World Economic Forum (WEF) has found that issues related to governance are the key concern for business executives in Bangladesh.

Besides, the executives termed the failure of financial mechanism or institution, and unemployment or underemployment the next major concerns for doing business in the country this year.

Failure of urban planning, climate change adaptation and critical infrastructure are some of the other risks that Bangladeshi executives might face in the next decade, the survey mentioned.

In the previous report published in 2019, the WEF identified energy price shock and high pollution as leading risks for doing business in Bangladesh.

The WEF's interactive map on Regional Risks for Doing Business 2020 showed unemployment or underemployment as the leading risk for doing business globally. This is also the same key risk for nations in the South Asian region.

Spread of infectious diseases is the second most recurring risk appearing in the top 10 in all regions. The risk has come to the fore this year, rising 28 places from last year's survey.

At the country level, unemployment or underemployment has been ranked as the top most risk in India and Nepal.

A significant number of business executives in Pakistan put the risk of "terrorist attack" at the top, while "issues related to the national governance" ranked top in Sri Lanka, similar to Bangladesh.

Business executives from developed countries such as the United States, United Kingdom, Australia, Canada, Germany, Netherlands, Singapore, Sweden, and Switzerland are worried over "cyber-attacks" as a top risk for doing business.

The findings of the Regional Risks for Doing Business 2020 are based on over 12,000 responses from business leaders in 127 countries. The survey is based on 30 selected risks, including terrorist attacks, extreme weather events and state collapse or crisis.

The business leaders were asked to determine "the five global risks that you believe to be of most concern for doing business in your country within the next 10 years."

More than 10% of business executives from each of the surveyed countries such as Mexico, Lebanon, Romania, and Sri Lanka conveyed "issues with national governance" could be a major risk for doing business.

Commenting on the matter, WEF's Managing Director Saadia Zahidi said, "The employment disruptions are being caused by the pandemic, rising automation and the transition to greener economies are fundamentally changing labour markets.

"As we emerge from the crisis, leaders have a remarkable opportunity to create new jobs, support living wages, and reimagine social safety nets to adequately meet the challenges in the labour markets of tomorrow."

Lee Hyung Hee, President of the Social Value Committee at SK Group, said, "The global pandemic has unleashed untold damage to our economies and societies. Business leaders in Asia have recognized that risk in their response to the Forum's survey, with infectious diseases appearing as the number one risk for the region.

"As new partners to the initiative, we are working to better understand the interconnections between the risks perceptions of business leaders and their broader multi-stakeholder community. What we already know is that tackling the intersecting risks of pandemic, financial risks, and climate change will be a cornerstone of the desired new normal."

The WEF conducted the survey in partnership with Marsh & McLennan Companies, Zurich Insurance Group, and SK Group.

It was part of the Forum's Global Risks Initiative, a work-stream that analyses critical global risks and communicates these risks to stakeholders and the wider public through digital and media assets.