Chapter Seven

Global Risks

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Source: Mike Luckovich

THE LAST FEW YEARS have provided a startling reminder that we still live in a world full of risks. We've seen recession, stock market gyrations, and unemployment streak between countries like an epidemic. Homes and retirement portfolios have been lost, and those starting off with less have fared far worse. An estimated 100 million more people went hungry in 2009 than in 2008.1 Globalization has been blamed for increasing volatility, and for spreading problems that would otherwise have remained localized.

Consider how a recent report by Lloyd's, the famed specialist insurance market, put it: ...

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