Every company will face a unique risk profile and it falls on you, the business owner, to ensure you are prepared for any eventuality your company is facing.
73 per cent of businesses are investing more time in risk management than they were a year ago.
This issue was recently explored by the Institute of Directors. The organisation's 2015 Director Sentiment Survey took the pulse of the country's corporate leaders to determine what the biggest risks are for New Zealand's business community.
What is the single biggest risk facing your organisation?
- Labour quality and capability – 11% of respondents
- Regulation – 10%
- Global market risk – 7%
- Technology disruption and cyber risk – 5%
Labour quality and capability - Also the biggest risk last year. This includes concerns about staff capability as well as the quality of training.
Regulation - Increases the cost and complexity of doing business. April 2016 sees new Health and Safety legislation come in to effect which imposes new duties on business owners and higher penalties.
Global Market Risk - Reflects the volatility and slowing in many of the developed economies in recent months.
Technological disruption and cyber risk - Has gained prominence as a risk for many businesses, and is a new entrant to the list of top 10 risks. Technological advances are disrupting many traditional business models as well as contributing to the level of cyber risk.
How can companies respond to major risks?
Risk management doesn't have to be difficult and the Director Sentiment Survey certainly suggests that many companies are feeling confident about the future.
67% of businesses expect to improve over the year ahead
It is possible that an effective risk management approach and a considered insurance program can address your risk concerns. A good broker will work with you to provide a complete service from advice to policy placement, right through to claims advocacy.
Talk to one of our local brokers if you’d like a second opinion on your plan to manage your biggest risks in the year ahead.
About the AuthorName: Greg Greenwood
I'm the South Island Operations Manager at Rothbury Insurance Brokers and live in Christchurch. I have a portfolio of commercial clients, many who have been my clients for years. My experience of earthquake claims and issues is called…
I'm the South Island Operations Manager at Rothbury Insurance Brokers and live in Christchurch. I have a portfolio of commercial clients, many who have been my clients for years. My experience of earthquake claims and issues is called upon frequently to assist clients and those needing insurance advice in the region. I am also the Chairman, Canterbury region for IBANZ (Insurance Brokers Association NZ).Close