The recently released Allianz Risk Barometer report identified ‘Changes in Legislation and Regulation’ to be the top risk for Australian businesses in 2019. According to the report, this year companies are most concerned about increasing legislation and more onerous compliance process.
The statistics released in the report were as follows:
- Respondents rated ‘Changes in Legislation and Regulation’ as the number one risk (at 36%), up from the third spot last year (with 28%)
- ‘Business Interruption’ remains in second place with 32%
- ‘Cyber Incidents’ has moved down from the number one spot in 2018, to position 3 (at 30%)
- The impact of ‘new technologies’ ranks as the fifth highest business risk in Australia for 2019
While the risk of cyber incidents may have moved down in the rankings for 2019, it is still a major concern for Australian businesses. 61% of Australian respondents identified cyber incidents as the cause of business interruption that they fear the most.
Technology is becoming an increasingly complex issue for Australian business owners. When asked which new technologies are the most useful for a company, 80% of respondents answered artificial intelligence. However, 66% of Australian respondents also identified Artificial Intelligence as the technology that posed the greatest risk to a business.
Allianz Global Corporate & Specialty Pacific’s CEO Willem Van Wyk said that the rapid pace of change is influencing business risk concerns. He stated:
“The increased pace of change, both in terms of legislation, regulation, market disruption and new technologies, is heavily influencing business risk concerns within the Australian market.
In light of the most recent report, Van Wyk advised Australian organisations to plan ahead and prepare for a number of disruptions to their business. These disruptions can come from with in the business and its operations, or from suppliers or new competitors.
Van Wyk warned “Regardless of the cause of disruption, the financial loss for companies following an event can be enormous.”
He said that new risk management solutions, analytical tools and partnerships can help business owners better understand and minimise the number of risks faced by businesses so that they can prevent losses before they occur.
If you’re concerned about the risks facing your business in 2019, or need some advice on risk management strategies, don’t hesitate to get in touch with your insurance advisor.
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