Philosophy of Strength, Risk Management

There is no single period when we can declare the economy to be flawless. More problems await the globe, particularly in the areas of economics, health, and technology. What may be incurred despite the huge advancements in digital technology, which have become an intrinsic element of the contemporary lifestyle? One of the costs of failure is the economy.

The language of money today is generated every second, and the environment is ripe for hazards with each new wave of digitalization or economic expansion. One of the most recent examples of this is the recent digital crisis that afflicted smart applications, which have grown in importance as a tool in business environments, not to mention other disasters.

Financial and corporate risks, general risks, private risks, fixed risks, moving risks, risks that can be transformed into positives, risks that can be removed, and entangled hazards that are difficult to deconstruct are among the many types of risks. Risks are an element of a successful strategic planning system, and contingency plans are effective when they arise.

The global economy is facing numerous challenges, and economists’ ideas differ on how to address them. The economy differs from other sciences in that it is based on specific data, as is the case in a free economic system, making it difficult to read expectations, particularly in terms of monitoring macroeconomic transformations at a time when it is difficult to do so.

Reading the road signs, which include monetary policy trends and the possibility of a return of tensions and fears, among other things, but the synthesis of harmony between these data cannot be predicted, and its validity can only be determined after success, which allows for diligence and experimentation.

As a result, managing an effective organized economy is an important pillar for avoiding risks, replacing alternatives, and moving forward toward growth in the event of crises, despite the fact that it is widely believed that the economic philosophy of risk management contains a lot of contradictions between theories and applications, which we can point out with difficulty in stages throughout the history of the global economy, which has failed in some of its stages from economic theory being able to predict and prevent crises.

Some economic viewpoints in this manner cast doubt on the use of predictive mathematical models to aid economic decision-making. For example, despite the fact that the Keynesian theory remains, in the eyes of its adherents, the magical cure to any and all economic crises or hazards, the classical theory failed to provide acceptable remedies to the depression crisis.

The philosophy of economic power, in my opinion, is an integrated concept that includes owning economic components and their rapid growth and development, as well as avoiding risks and managing them with an economic mastermind, and then correcting the risk balance, international coordination, and broader strengthening of emerging market capabilities because they are the main engine of global growth.

In the case of Saudi Arabia’s economy, the philosophy of power is based on a new transformation based on clear and achievable goals with a main focus on sustainable economic diversification, and despite the risks that the world’s economies have faced, the Saudi economy has achieved positive results in the short and long term, ensuring the Kingdom’s economic leadership in this acute emergency crisis.

These findings give us great confidence in our economy and that it is on the right track with its expectations, which are based on anticipating and managing potential risks, as well as enhancing the value of investments, with investments totaling more than 12 trillion riyals expected to be pumped into the local economy until 2030 AD (5 trillion riyals from partner program initiatives and projects, and 3 trillion riyals)from the Public
Investment Fund, and 4 trillion riyals from various national and international corporations’ investments, all under the umbrella of the national investment policy.

The Future Investment Initiative program, in its fifth edition, will be inaugurated in Riyadh next Tuesday, October 26 to 28, 2021, under the tagline “Investing in Humanity,” as a complement to this system.

They will work on artificial intelligence, robots, education, health care, and sustainability, among other topics. The International Monetary Fund has altered its expectation for Saudi economic growth in 2021 as a result of these statistics on the country’s strength, compared to prior estimates.

In comparison to last July’s report, it upped its GDP growth prediction for the Kingdom by 0.4 percent. According to the October World Economic Outlook report, it also increased its forecast for Saudi economic growth to 2.8% in 2021, up from 2.4% in July. It also set the Kingdom’s GDP growth forecast for 2022 at 4.8%, which is unchanged from its prior report’s estimates.

In sum: Current economic issues are not the same as past or future causes, and risks can arise at any time, necessitating concerted international and intellectual efforts, as well as the establishment of international risk management agencies capable of avoiding crises and facing potential risks by preparing for them and adapting to their consequences in order to achieve global growth and prosperity.