The increasing regulatory burden is now the number one thing keeping Australian business leaders and managers awake at night, according to a comprehensive new report.
Aon’s 12th annual Australasian Risk Survey found fears over regulatory and legislative change had leapt to number one, up from third position last year.
Aon Risk Solutions Australia CEO Lambros Lambrou says it is a reflection of the growing pace of change and costs of keeping up with it.
“Regulatory and legislative change has been moving up consistently through the top ten risks over the past few years,” he says.
“Legislative change adds cost pressure to a company’s bottom line in many ways, both directly where it results in more restrictive working conditions and potential additional fines and penalties and indirectly, for example in compliance costs.
“Having the systems in place to support effective risk management is increasingly a determinant of a business’ ability to succeed in fast-moving and challenging times.”
The fastest moving risk in the top ten was people risk, which leapt from outside the top 10 to number three.
“The cost of Workers’ Compensation insurance is increasing and has led to a greater focus on injury prevention and early intervention,” Lambrou says. “Harmonisation of work health and safety laws across most states and territories has also increased awareness of the issue. The need to manage these increasing costs is a clear business imperative.
“Companies that positively manage their people risk issues by taking specialist advice can significantly reduce costs.”
Top 10 risks to Australian and New Zealand businesses:
- Regulatory & legislative change
- Local economic conditions
- People risk
- Increasing competition
- Brand & image
- Global economic conditions
- Human resources
- Weather and natural disasters
- Failure to innovate
- Business interruption and supply chain risk
To download the full report, click here.
For last year’s report, click here.