According to the 2023 Global Risks Report, the high cost-of-living crisis was ranked the most severe global crisis expected over the next two years.
In the report conducted by the World Economic Forum, the high cost of living was accompanied by extreme pressures disproportionately hitting those that can least afford it.
Additionally, the report detailed several long and short-term crises that are expected to affect the world in the next two and 10 years.
In Kenya, the report identified five crises that will affect Kenyans in the next two years and 10 years.
Some of these crises were debt risk, cost of living, employment and livelihood, geopolitical contestation of resources, and failure of climate change adaptation.
However, the report shared how Kenyans can prepare for each of the looming crises.
Foresight
According to the report, the first task of foresight is to identify future developments, risks, and opportunities
"Enhanced risk identification and foresight can be a key enabler for strategic decision-making, agenda-setting and resilience measures, helping to prioritize areas that would benefit from data collection and monitoring, risk controls and resources, and redundancies," the report read in parts.
In addition, Kenyans ought to explore different changing dynamics in the economy. For example, the policies implemented by the government directly affect the economy.
Rethinking 'Future' Risks
Some of the crises that befall Kenyans according to the report are those that they are least prepared for.
An analysis of some of the responses indicated that the level of preparedness for the cost-of-living crisis was inadequate among many Kenyans.
Consequently, the World Economic Forum advised Kenyans to rethink what they consider future crises to avoid misuse of funds on non-crises.
Broad Investing
Through this, Kenyans are able to plan for the short and long-term risks rather than preparing for the long term only.
The report also noted that the pandemic was a wake-up call for everyone to be fully prepared for any crisis.
"As global risks become more intertwined, preparedness also needs to become more of a shared responsibility between sectors, with local and national governments, business and civil society each playing to their strengths, rather than traditional models of governments addressing market failures when they occur," the report added.
Strengthening Risk Preparedness Cooperation
This involves the incorporation of other risk mitigation organisations. For example, getting insurance to protect your belonging.
On the other hand, the report called upon national governments to work together in the preparedness for looming crises.
"There must be a better balance between national preparedness and global cooperation. We need to act together to shape a pathway out of cascading crises and build collective preparedness for the next global shock," the report read on.
