As per the World Economic Forum's Global Risks 2012 report released today, the industry leaders' concerns have shifted from environmental in 2011 to socio-economic risks in 2012.

The report, based on an annual survey of industry leaders and experts from across the globe, also warned of economic imbalances and social inequality risk reversing the gains of globalisation.

"Respondents worry that further economic shocks and social upheaval could roll back the progress globalisation has brought, and feel the world's institutions are ill-equipped to cope with today's interconnected, rapidly evolving risks," it said.

The report, has been released by WEF ahead of its Annual Meeting in Davos later this month.

It said the risk landscape has changed since 2011 and therefore might not be entirely comparable. "However, it is clear that respondents' concern has shifted from environmental risks in 2011 to socio-economic risks in 2012".

As per the survey, the top-five risks for 2012 of likelihood are -- severe income disparity, chronic fiscal imbalances, rising greenhouse gas emissions, cyber attacks and water supply crisis.

In comparison, such top-five risks of 'likelihood' in 2011 were-- meteorological catastrophes, hydrological catastrophes, corruption, biodiversity loss and climatological catastrophes.

On the other hand, the top five risks for 2012 in terms of impact include major systemic financial failure, water supply crises, food shortage crises, chronic fiscal imbalances, and extreme volatility in energy and agriculture prices.

The five top risks in terms of 'impact' in 2011 were fiscal crisis, climatological catastrophes, geopolitical conflict, asset price collapse and extreme energy price volatility.

The report further said that chronic fiscal imbalances and severe income disparity are the risks seen as most prevalent over the next 10 years.

"These risks in tandem threaten global growth as they are drivers of nationalism, populism and protectionism at a time when the world remains vulnerable to systemic financial shocks, as well as possible food and water crises," it said.

"For the first time in generations, many people no longer believe that their children will grow up to enjoy a higher standard of living than theirs," said Lee Howell, the WEF Managing Director responsible for the report.

"This new malaise is particularly acute in the industrialised countries that historically have been a source of great confidence and bold ideas," Howell said.

The report listed seeds of dystopia, unsafe safeguards and the dark side of connectivity as the three major risk cases of concern globally.

"Bulging populations of young people with few prospects, growing numbers of retirees depending on debt-saddled states (stoking fiscal imbalances) and the expanding gap between rich and poor are all fuelling resentment worldwide.

The report said that the context and challenges are different in emerging economies.

"Countries such as Indonesia, Vietnam, the Philippines, Mexico, Peru and the BRIC countries (Brazil, Russia, India and China), are racing to take advantage of a demographic window of opportunity presented by large labour forces with relatively few dependents, before this population also ages.

"These nations' ability to seize the opportunity is far from guaranteed, given sluggish global growth and reduced demand from developed economies.

"Rapid economic growth in emerging economies has fuelled an impatient expectation that a rising tide will lift all boats, but social contracts may not be forged quickly enough to rectify increasingly visible economic inequalities and social inequities," it noted.

The report also said that India's National Rural Employment Guarantees Act was among examples of new government programmes that aim to redistribute wealth and guarantee incomes in an effort to fight poverty and inequality.

"However, like welfare systems in developed economies, these programmes depend on continued growth and expanding employment and are therefore vulnerable to economic contraction," it noted.

About unsafe safeguards, it said that the policies, norms and institutions from the 20th century may no longer be sufficient in a more complex and interdependent world. It further said that the people's daily lives are now

almost entirely dependent on connected online systems, making them susceptible to malicious individuals, institutions and nations that increasingly have the ability to unleash devastating cyberattacks remotely and anonymously.

"The Arab Spring demonstrated the power of interconnected communications services to drive personal freedom, yet the same technology facilitated riots in London," said Steve Wilson, Chief Risk Officer for General Insurance at Zurich.

The report further said that global governance is closely intertwined with all other global risks and there was a need for rethinking private and public responsibilities.