Changes in regulation and legislation were identified as the top risks to businesses in 2019, according to Allianz Risk Barometer.
The 2019 report is based on the reponses of 2,415 risk experts in 86 countries, which includes Australia.
36 per cent of respondents from Australia rated “changes in legislation and regulation” as the number one risk in 2019. In 2018, it rated as number three on the risk list.
Second place on the risk list was “business interruption” which received 32 per cent of responses. “Cyber incidents” received 30 per cent of responses, moving down from the number one spot in 2018.
Businesses want but distrust new technologies
The impact of “new technologies” to business ranked as the fifth highest business risk in the 2019 report, however business remain hopeful that new technologies will be valuable to their operations.
When asked what new technologies are the most valuable for a company, 80 per cent of Australian respondents was Artificial Intelligence. When asked which new technologies are risky for business, Australians answered Artificial Intelligence (66 per cent).
In comments obtained by Inside Small Business, Willem Van Wyk, CEO of Allianz Global Corporate & Specialty Pacific said:
“Australian organisations need to plan and prepare for a wide range of disruptive scenarios that can stem from their own operations, suppliers, IT service providers or new competitors.”
Preparing for the worst
Businesses regardless of size, need to understand the potential financial loss when it comes to adopting new technologies along with an ever-changing regulatory environment.