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Chart of the Day: A picture of risk

Fiscal crises, weapons of mass destructions and a slowing Chinese economy – just a few of the concerns of the World Economic Forum in its sixth Global Risks report

It is difficult to illustrate all the risks posed to the global economy. Nevertheless, the World Economic Forum has given it a go. As this chart shows, there are numerous dangers facing the global economy – from corruption, weapons of mass destruction to climate change.

The chart, which features in WEF's sixth edition of Global Risks 2011, shows the probability of an event happening (y-axis) vs. the event's severity (x-axis). The biggest causes for concerns therefore include fiscal crises and energy price volatility, while issues such as a slowing Chinese economy are seen as not as likely, but potentially catastrophic if allowed to happen. Non-financial issues such as water security also loom as significant threats.

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