What it means
The Forum was founded in the early 1970s in Switzerland and is based in Geneva. It is a not-for-profit body that is funded largely by membership fees paid by large companies.
It describes its role as improving the state of the world through cooperation between the public and private sectors. The annual meeting in Davos, held in the winter, is the event most people know.
Leaders from business, government, academia and civil society attend sessions on topics such as the global economy, technology, climate and trade. Much of its value to attendees comes from private meetings and conversations on the sidelines rather than the public sessions.
Beyond the meeting, the Forum runs year-round projects and publishes reports. One of the best known is the Global Risks Report, which surveys experts on the risks they see as most serious over the short and long term.
Companies use such reports as a prompt for their own risk registers and scenario planning, though they are opinion-based and not forecasts. For finance professionals, the Forum matters as a source of ideas and as a gauge of the topics boards are talking about.
Themes raised at Davos, such as climate reporting, digital currencies or supply chain resilience, often show up later in investor questions and regulation. Reading its output helps a finance leader anticipate what stakeholders will ask.
The nuance is that the Forum has no power to make rules or enforce decisions. It is a convening body, and critics point out that its membership is weighted towards large companies.
Its reports should be read as informed discussion rather than as official data. The Forum also supports communities of practice that work on specific issues, from digital trade to financial inclusion.
These groups publish white papers and pilot ideas that sometimes feed into regulation or industry standards. Finance leaders who follow them gain an early view of areas such as data governance, tokenised assets or climate disclosure before formal rules appear.
In practice
Real-world examples.
Example
A CFO of a global manufacturer reads the Forum's risk report before the annual planning round. She asks her team to add two supply chain risks to the company's risk register and to estimate the cost of each. The exercise costs very little and gives the board a clearer view of its largest exposures.
Example
A start-up founder attends the annual meeting and meets a potential investor. The conversation leads to a formal due diligence process some weeks later. The founder admits the meeting itself did not close the deal, but it opened the door.
Example
An investor relations team notices that sustainability reporting is a leading topic in Davos discussions. It prepares a briefing for the board on what shareholders may ask about at the next results presentation. The briefing includes a draft answer for each likely question, so management is ready.
Case study
Seen in the real world.
Lakeshore Logistics is an illustrative, fictional freight company with operations in 30 countries. Its chief executive attended a Forum session on supply chain risk and returned with a list of questions for the finance team.
The CFO responded by building a simple scenario model. It tested what would happen to margins if a major shipping route closed for three months, adding $2,000,000 in extra fuel and delay costs to a business with $90,000,000 in annual revenue. That was about 2.2% of revenue, enough to prompt a review of contract clauses and insurance cover.
The board approved a small fund to hedge fuel costs and renegotiated surcharge terms with its largest customers. The illustrative lesson is that a global discussion became useful once it was turned into numbers for the company's own situation.
Watch out
Common mistakes.
- Treating the Forum's reports as official forecasts, when many are based on expert opinion and surveys.
- Believing the Forum can set rules or policy, when it has no regulatory or legal authority.
- Assuming that attending the annual meeting is open to anyone, when participation is by invitation and membership.
Questions
People also ask.
Who funds the World Economic Forum?
Mainly membership and partnership fees paid by companies, together with some other income, which is why it is described as a not-for-profit organisation. It also earns some income from events and from research collaborations.
Why do finance teams read the Global Risks Report?
It highlights risks that experts consider serious, which can help challenge the assumptions in a company's own risk register. It can also reveal how the company's risks compare with those experts rank highest.
Is the Forum part of the United Nations?
No, it is an independent organisation and is not part of any government or the United Nations. It does not have the power to bind governments or companies to any agreement.
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