The International Monetary and Financial Committee of the International Monetary Fund (IMF) in its communiqué last week noted that risks to the global economy are skewed to the downside. This should worry policymakers around the world. The World Economic Outlook of the IMF, compared to its April projections, revised global growth forecast down for the current year and the next. A number of emerging market economies are under pressure because of factors such as rising trade tension, tightening of global financial conditions and the rise in crude prices. Further, the Global Financial Stability Report (GFSR) of the IMF highlighted risks in the global financial system. Downside risks were also reflected in stock markets around the world last week with a spike in volatility. It is likely that volatility will remain elevated in the near term because of a variety of emerging risks.