The world faces growing risks as persistent economic weakness and chronic deficits undermine governments’ abilities to cope with long-term threats such as climate change, according to a new report from the World Economic Forum.

And more than five years after subprime mortgage problems triggered the global financial crisis, confidence in the financial system remains tenuous at best despite waves of regulatory reform. The report cites major systemic financial failure as the risk that carries the greatest potential negative impact for the global economy.

“Two storms ­— environmental and economic — are on a collision course,” says John Drzik, CEO of management consultancy Oliver Wyman Group, who advised the forum on the report. “If we don’t allocate the resources needed to mitigate the rising risk from severe weather events, global prosperity for future generations could be threatened.”

Meanwhile, a separate forecast sees a significant shift ahead in the balance of risk between developed and emerging markets.