State-based armed conflicts, extreme weather events, and geoeconomic confrontation topped the first three risks for the year, according to the World Economic Forum's Global Risks Report 2025 released on Wednesday.

The report came out ahead of the forum's annual summit next week, from Monday to Friday when senior government officials and business leaders will convene in Davos, Switzerland, to discuss pressing global issues from escalating geopolitical, environmental, societal and technological challenges.

"Rising geopolitical tensions and a fracturing of trust are driving the global risk landscape," Mirek Dusek, managing director of the World Economic Forum, told media at an online briefing of the report. "In this complex and dynamic context, leaders have a choice: to find ways to foster collaboration and resilience, or face compounding vulnerabilities."

Relying on a survey of more than 900 experts, policymakers, and industry leaders about their perceptions of global risk in the short, medium, and long term, the report found that 23 percent of the respondents see state-based armed conflict as the most likely to present a material crisis on a global scale in 2025.

"Fear and uncertainty cloud the outlook in various parts of the world, including Ukraine, the Middle East, and Sudan, with multilateral institutions struggling to provide effective mediation and work toward resolutions," said the report.

Environmental risks dominate the longer-term outlook.

The geoeconomic confrontation was also on the imminent risk list, as the incoming US administration has suggested that it will implement higher tariffs on imports.

Borge Brende, president and CEO of the WEF, said on Tuesday that the forum is expecting online participation from United States President-elect Donald Trump, which will be Trump's first appearance in such an event after he is sworn in on Jan 20.

Carolina Klint, chief commercial officer of Marsh McLennan Europe, a professional services firm in risk management and insurance brokerage, said, "We will likely see trade wars develop."

However, she said that businesses have an opportunity to engage with policymakers to advocate for the revival of multilateral and bilateral trade agreements.

"By promoting a more collaborative approach to trade, we can in fact help reduce some of the fragmentation that we see and maybe foster a more stable economic environment," she said.