What are the top business risks in Australia?
What are the top business risks in Australia? | Insurance Business Australia
Cyber
What are the top business risks in Australia?
Aon survey sheds light
Cyber
By
Roxanne Libatique
Aon plc (Aon) has released the findings from its 2023 Global Risk Management Survey, highlighting the primary business challenges for Australia.
The survey, which incorporates responses from nearly 3,000 risk managers, executives, and C-suite leaders across 61 countries and territories, aims to pinpoint the key concerns affecting businesses today.
Top business risks in Australia for 2023
The survey indicated that cyberattacks and data breaches remained the foremost business risks in Australia, consistent with the 2021 survey findings.
Regulatory and legislative changes, meanwhile, moved up to the second spot, reflecting the growing complexity of navigating regulatory environments across different jurisdictions and the scrutiny of organisational operations, particularly in sectors like resources and financial institutions.
The challenge of attracting and retaining top talent was also highlighted as a significant risk, emphasising the impact of talent competition and workforce shortages on innovation, competitiveness, and risk exposure in various areas, including cyber security and regulatory compliance.
Top 10 business risks in Australia
According to the survey, the top business risks in Australia are as follows:
Cyberattacks/data breach
Regulatory/legislative changes
Failure to attract or retain top talent
Economic slowdown/slow recovery
Damage to reputation/brand
Business interruption
Supply chain or distribution failure
Workforce shortage
Major project failure
Cash flow/liquidity risk
Climate change is identified as a direct factor in three of the top 10 risks: business interruption, supply chain/distribution failure, and regulatory/legislative changes. The increased frequency and severity of extreme weather events poses a substantial risk to business operations and supply chains, while the transition to net zero emissions influences market trends and regulatory disclosures.
Aon Australia CEO Jennifer Richards commented on the importance of preparedness in the face of evolving threats.
“As leaders look to the future of their businesses in an increasingly volatile world, new and emerging threats are reshaping their views of risk and sharpening the need to make better decisions,” she said. “With cyber risks, regulatory changes, and attracting and retaining top talent identified as top risks for businesses facing organisations today, there is a compelling need to be better prepared by accessing insights driven by advanced analytics and expert advisors to elaborate on the dynamics of both short and long-tail risks.”
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