The World Economic Forum (WEF) recently released its “Global Risks Report 2023”, warning that eroding geopolitical cooperation will contribute to a potential "polycrisis" of interrelated environmental, geopolitical, and socioeconomic risks relating to the supply of and demand for natural resources. The term "polycrisis" was popularized by historian Adam Tooze and has become a buzzword in the world of business and finance. But what exactly is a "polycrisis" and why should you care about it?
A "Polycrisis" is a concatenation of shocks that generate crises that trigger crises in other systems, making the combined effect far worse than the sum of its parts. The notion of a "polycrisis" is based on the idea that the world is becoming increasingly interconnected and complex, making it vulnerable to an interconnected, complex global catastrophe.