In the Asia Pacific region, it is important to address the risk of critical infrastructure failure or shortfall, as analyzed by the latest annual report by Marsh & McLennan Companies’ Asia-Pacific Risk Center titled “From Threats to Impact – Evolving Risk Concerns in Asia-Pacific.”
The risks to the region’s physical infrastructure affect regional economic growth, and also carry significant societal implications, with inequality and social instability at the center. Underdeveloped critical infrastructures present a major barrier to poverty reduction and equitable development.
The existing infrastructure failure or shortfall in Asia-Pacific will be exacerbated by three ongoing trends in the region:
- The rapid economic growth, which is accompanied by rapid growth in population and urbanization; all of which create demand for critical infrastructure, energy and information and communications technology sectors (ICT)
- The increasing frequency and unpredictability of climate change events will inflict significant damage on critical infrastructure and also heighten demand for the expansion and upgrade of old infrastructure. It will also necessitate the provision of new infrastructure that can contribute to climate change adaptation and mitigation
- The rise in cyber dependency has made physical infrastructure significantly more connected and thus more vulnerable to cyber-attacks. The increased frequency and sophistication of these attacks in recent years have highlighted the need to protect critical infrastructure from a cybersecurity perspective.