Business interruption is a quickly growing area of concern among Australian business, a new survey has found.
Released yesterday, the 11th annual Aon Australasian Risk Survey revealed a steep rise in concern about business interruption, which moved up two places from last year to rank fourth in the list of the biggest business concerns.
Aon Global Managing Director Jason Disborough says the change can be attributed to the floods, fires and earthquakes of recent years.
“The effects of these disasters have been felt by many businesses, especially in terms of customer impact and there is a real understanding now that there is absolutely no room for apathy about business interruption risk – particularly in relation to supplier management,” he says.
Concern over the market environment has leapt up seven places in the last few years, ranking equal first alongside brand image.
“This would suggest that despite relatively strong local performance, organisations now see the economy as a greater risk than they did during the GFC and its immediate aftermath,” Disborough says.
“It’s likely that the sheer persistence of the sovereign debt crisis in Europe, slower than expected economic growth in China and India and uncertainty surrounding US fiscal policy is taking its toll.
“Underpinning this may well be concerns about our economy’s reliance on natural resources and the risk of lessening demand from emerging markets.”
Meanwhile, regulatory and legislative change rank as the fourth biggest concern.
“The concern surrounding regulatory change may be based to a large extent on continued political uncertainty with an election on the horizon, along with new legislation such as the Carbon Tax, the Mining and Mineral Resources Rent Tax and the harmonisation of the Occupational Health and Safety laws,” Disborough says.
NIBA College offers a Business Interruption CPD course. Worth six CPD points, the course is $180 for NIBA members and $225 for non-members.