A recently published global survey has revealed the five greatest risks to doing business in Australia in 2017.
The World Economic Forum (WEF) Global Risks Report, produced in collaboration with Zurich
Insurance Group and Marsh
& McLennan Companies, revealed energy price shock and asset bubble as the risks of highest concern among local executives.
Search and compare insurance product listings for Management Liability from specialty market providers here
Also making the list were cyberattacks, unemployment/underemployment, and failure of critical infrastructure and climate change adaptation, which shared the number-five spot.
The Australian data was drawn from the WEF's executive opinion survey, which polled 12,411 executives across 136 countries on their five biggest risks to doing business in Australia over the next decade.
The global survey's aggregate results, meanwhile, identified unemployment/underemployment, fiscal crises, failure of national governance, energy price shock, and profound social instability as the top five risks.
“The results demonstrate that Australian businesses are focused on the here and now, which is understandable with the ongoing debate about energy policy and questions around interest rates and the property market,” said Giles Crowley, head of commercial at Zurich
Australia and New Zealand. “The prominence of cyber in the local results is also consistent with the conversations we’re having in the market – it’s absolutely top of mind for Australian boards and management teams.”
Giles said that no matter where the risks are coming from, what is important is for Australian executives to find out how they can mitigate and manage risks to make their businesses more resilient.
“It’s easier said than done, but there will be dividends for those that develop robust risk management strategies that give them options amidst uncertainty,” he said.
“Energy pricing’s leap to pole position reflects how pressing an issue securing our energy supply has become for Australian businesses,” said Costa Zakis, Pacific head of Marsh
Risk Consulting. “While energy price shocks add to the cost pressure and challenges profitability for all businesses, in sectors like manufacturing, the prospect of energy shortages poses a serious threat to their ability to operate. A strain on resources is only exacerbated by extreme weather so it is unsurprising that climate change adaptation has also crept into the top five risks for businesses in 2017.”
The next Global Risks report will be issued in January.
Brokers: time to take care of the total cost of risk
Insurance giants reveal biggest risks