Regulation top risk for financial services
The threat of regulatory change has outranked cyber crime and PR disasters as the greatest risk to the financial services industry, a survey shows.
A raft of post-Global Financial Crisis changes in Australia, including the recent Future of Financial Advice (FOFA) reforms, saw regulation move to first place on the risk scale for financial services, according to the Allianz Risk Barometer.
Niran Peiris, managing director of Allianz Australia, said regulatory fear could create a "systemic threat" for financial services businesses.
"At the industry level globally, regulatory change was the number one risk facing the power/utility sectors and financial services, the latter reflecting increasing supervisory intervention around the globe following the Global Financial Crisis," Peiris said.
"Regulatory change over recent years, as well as foreshadowed reviews or changes in the areas of financial services regulation and carbon taxation/renewable energy, might also be impacting here."
For Australian businesses in general, regulatory change ranked second to business interruption on the barometer - a jump from eighth place last year.
Globally, regulatory change did not make the top three in terms of risk, with business interruption, natural catastrophes and fire/explosion continuing to hold the top spots.
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