What are the top risks for the Australian Business Landscape?
Aon’s 2021 Global Risk Management Survey has revealed that long-tail risks have become a focal point of the risk landscape. There is an increased cyber risk with increasing reliance on technology as global economics and trade have been impacted by unprecedented lockdowns as a result of the pandemic.
This survey has also highlighted the growing interconnectivity of risks, with cyber-attacks, damage to brand, and failure to innovate and meet customer demand as the top three risks facing Australian businesses in 2021.
The need for proofing against cyber attacks and data breaches: Cyber security has been perceived as the top 10 risks by every surveyed sector and for all job roles, including CFOs, CEOs and chief people officers. It has been predicted that ransomware, supply chain risk, business email compromise and attacks against operational technology will be the primary cyber threats to Australian businesses.
Preventing damage to reputation and brand: Australian businesses have recognised that a reputational crisis can have a substantial impact on a company’s future. In 2021, with the continued impact of the pandemic on businesses’ responses to the changing economy, the prevalence of social media threats and the 24/7 news cycle has the potential to create immediate and lasting impacts on an organisation’s shareholder value and reputation.
Prioritising innovation and efficient customer delivery: Innovations must bring in sustained growth to the company in the post-pandemic world. Failure to do so poses a commercial risk. Simultaneously, organisations have to be equipped to handle uncertainty and ambiguity.
Overcoming business Interruption: Ranked at number four in Australia and number one in APAC, business interruption is an ever-present threat across all organisations and industries. The hospitality, travel and leisure industry have faced the biggest interruption issues because of continued travel restrictions along with drops in consumer demand.
The war for talent remains: Failure to attract or retain top talent remains top of mind for Australian businesses, creeping up into the top five concerns which are significant in light of reports across the world on the ‘great resignation’ of employees following COVID-19. Employees are demanding more from their employers, rejecting the traditional employer-led model and re-examining what is important to them in their roles and work/life balance.
What has become the top priority for Australian businesses moving forward then is to strategise in the arena of cyber risk, make space for innovation, evaluate their customer delivery and EVP and build market solutions that can tide over any and all potential challenging situations and contribute to their sustained growth.