External risk concerns now a focus
External risk concerns have overtaken internally focused corporate risk issues as a major concern for Australian companies, according to the latest AON Australian Risk Survey.
The survey, released last week, suggested this was the first time this had occurred in around a decade.
It said that with a slew of natural disasters and market turmoil impacting organisations and their operations, the survey had found that the level of concern across all risk categories had increased over the past year, with external risks now rated on average as the highest type of risk concern facing businesses.
Commenting on the survey, AON Risk Solutions managing director Paul Venning said 2011 had been a year when many organisations across Australia and New Zealand had been severely impacted by an array of factors beyond their control.
"From some of the most devastating natural catastrophes in history through to the fallout from the European debt crisis, companies have been faced with increasing challenges from external risks," he said.
"Last year, there were major floods across three eastern states, as well as severe storms in Victoria, bushfires in Perth and the Margaret River, Cyclone Yasi and multiple earthquakes in the Christchurch region of New Zealand," Venning said.
"This year we have already seen major flooding across Queensland, New South Wales and Victoria."
"Natural disasters and to a lesser extent global financial instabilities are highly unpredictable.
"Given recent trends, companies across Australia and New Zealand are encouraged to ensure that they have robust risk management practices in place to minimise the impact of external risks on their organisation," he said.
Venning noted that for a fifth consecutive year the survey found that damage to brand and image remained the most important risk concern for organisations across Australia and New Zealand.
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