According to the McGrathNicol report ‘The Changing Landscape of Business Risk’ 89% of Australian business leaders believe risk and security challenges will worsen over the next 12 months.
Key findings from the report include:
Businesses are underestimating the secondary impacts of geopolitics
Despite warfare in the Middle East and Ukraine, and rising tensions in the South China Sea, only a quarter of organizations (25 percent) rate ‘geopolitical risks’ as a top three risk: this is down from 41 percent in 2023.
Cyber concerns grow, as supply chains are increasingly targeted
Cyber risk has now overtaken financial risk as the number one concern for Australian businesses. ‘As threat actors strategically target businesses along the supply chain, almost half of surveyed organizations (44 percent) are preparing for cyber risks and security concerns to increase in the year ahead.’
Supply chains risk awareness is increasing
Awareness of supply chain risk is growing, with 80 percent of surveyed organizations now incorporating some element of supply chain risk into their broader risk management program (up from 26 percent in our 2023 survey).
Legal and regulatory risks
More than half of all surveyed organizations (55 percent) rank legal and regulatory risks as a ‘top five’ concern, with 27 percent believing that these risks will increase in severity over the next 12 months.
