Risk Management Survey: Fear of Regulation and legislative change ranked Top Risk of 2019
Promoted by Governance Institute of Australia.
Governance Institute of Australia’s 2019 Risk Management Survey found big opportunities for legal professionals in the wake of multiple Royal Commissions.
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.
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