Businesses pegging government to stay out of its way

Risk Barometer

Australian businesses are increasingly confident that governments won’t be a drag on their operations, according to a major international survey.

Allianz Global and Corporate Specialty (AGCS) has released its annual Risk Barometer report, which has found concern over government legislation and regulation has plummeted, falling from being the second biggest worry in 2014 to number nine on this year’s list.

Business interruption and supply chain risks remain business’ number one worry, says AGCS Pacific General Manager Holger Schaeffer.

“The growing interdependency of many industries and processes means businesses are now exposed to an increasing number of disruptive scenarios,” he says.

“Negative effects can quickly multiply. One risk can lead to several others. Natural catastrophes or cyber attacks can cause business interruption, not only for one company but for whole sectors or critical infrastructure.

“Risk management must reflect this new reality. Identifying the impact of any interconnectivity early can mitigate or help prevent losses occurring. It is also essential to foster cross-functional collaboration within companies to tackle modern risks.”

Schaeffer says although many businesses spend a lot of time assessing their own BI risks, much more work needs to be done on supply chain risk management, with many businesses still not having alternate suppliers.