Governance Institute of Australia has released its 2019 Risk Management Survey, which saw nearly 500 Australian risk managers, legal professionals and governance leaders provide their insights into the unique challenges facing their industries, both now and into the future.
Across nearly all respondent groups ‘Regulatory Reform / Legislative Change’ was chosen as the top risk both across the next 12 months, and again across the next three to five years. This is a huge opportunity for the profession to provide legal advice and support, especially in the wake of multiple Royal Commissions across the country.
‘Damage to Brand or Reputation’was second, followed by ‘Increased Competition’ (#3), ‘Talent Attraction/Retention’ (#4) and ‘Cyber-crime’ (#5) to round out the top five risks facing all Australian organisations over the next 12 months.
There was one key industry exception – Professional Services, which bucked the above trends. Regulatory reform dropped to sixth as a risk ‘over the next 12 months’. Concerns around ‘brand and reputation management’(#1) remain, but is instead followed by ‘economic shock’, ‘increased competition’, ‘technological disruption’, and ‘talent retention/attraction’ in Australian Professionals’ top five.
In three to five years, Professionals placed a heavy focus on technological risks. ‘Technological Disruption’went to #1, followed by ‘Cyber-crime’ – highlighting increased anxiety around the roles of new technologies such as Artificial Intelligence/Machine Learning, blockchain and other technologies that look set to challenge traditional ‘human’ tasks, such as discovery.
Interestingly, given the concerns around workplace conduct and sexual harassment that have dogged the sector in recent years, ‘staff conduct’ and ‘liability’ closely followed ‘brand and reputation management’ as the risks the industry believes it is currently best at proactively identifying and managing.
Finally, while respondents felt that Risk Management was highly valued by their organisations (70% agreed/strongly agreed), the need for ‘better tools and resources’ (29%) to manage risk and ‘clarity of purpose and strategy’ (23%) from leadership were key areas of concern.
Concerned about brand risk?
If like many other Australian organisations, you’re concerned about the risks associated with your brand, join our workshops on governing your reputational risk throughout July. Apply best practice and case studies to uncover key approaches to help you take control of reputation risk.
Enjoying our content? Take advantage of our EOFY discount on Certificates
Our Certificates offer practical knowledge and skills in governance and risk management that can be readily applied in your workplace.
Book one of our June or July 2019 intensive Certificates and save up to $595 — that means you get one of your short courses for free!
Conditions: You must book and pay for your Certificate before 30 June 2019.
Please call us on 1800 251 849 and quote EOFY2019 to take advantage of this offer.