Taking risks could be the best course of action for businesses amid ongoing uncertainty economic and geopolitical conditions.<\/p>\n
“The real risk is not making the wrong move in uncertain conditions. It is standing still while the environment, and your competitors, keep moving,” BDO risk advisory national leader Tarunesh Singh said, reflecting on the release of the BDO Global Risk Landscape Report survey of 500 business leaders around the world.<\/p>\n
Singh said risk and disruption was no longer the exception for businesses.<\/p>\n
He said a New Zealand version of the report suggests that New Zealand’s world view was little different from what was seen elsewhere, though local businesses were increasingly prepared to take risks.<\/p>\n
“The culture around risk in New Zealand is shifting, and I think that the proportion of business owners and corporations that are more willing to take risk and more willing to to take action is definitely increasing year on year,” Singh said.<\/p>\n
“I think that businesses are making decisions and taking action, certainly more so than they did three or five years ago.”<\/p>\n
Singh said there was no longer a perfect time to act on investment or other critical business decisions.<\/p>\n
He said waiting for certainty could mean waiting indefinitely, which could be costly.<\/p>\n
“The cost of delay can be easy to underestimate. While one business holds off, others are adapting, investing and accelerating.”<\/p>\n
Among the potential cost risks were fuel price surges, shipping and logistics disruption, border settings that affect immigration and access to talent, inflation and price volatility, cost-of-living pressure and political instability, at home and abroad, all paint the same picture.<\/p>\n
Global risk factors<\/p>\n
The global findings point to a business environment where crisis response is becoming routine, but proactive risk management is becoming harder to sustain.<\/p>\n
Four out of five business leaders (80 percent) say the global risk landscape was more defined by crisis than ever before with<\/p>\n
68 seeing the speed at which crises were impacting their organisation was increasing (up 14 percent).<\/p>\n
Geopolitical instability was also intensifying other risks, while fraud remained underestimated and many organisations continued to respond reactively rather than taking a more proactive approach to risk management.<\/p>\n
Singh said the best way to deal with risk was to be seen to be managing it, as most cases of fraud were inside jobs by people with day-to-day access and visibility on what happens.<\/p>\n
“It’s either people internal to the organisation or close external stakeholders like suppliers seeing an opportunity over time. Then seeing that actually nobody might be watching a particular area or aspect, and then taking the opportunity that they’ve identified<\/p>\n
“Robust processes and controls deteriorate and change over time, and they’re affected by people changing roles, moving on, turnover, new technology, and so they do need to be regularly reviewed.”<\/p>\n","protected":false},"excerpt":{"rendered":"Taking risks could be the best course of action for businesses amid ongoing uncertainty economic and geopolitical conditions.…\n","protected":false},"author":2,"featured_media":567155,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[111,43,139,69],"class_list":["post-567154","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-zealand","tag-new-zealand","tag-news","tag-newzealand","tag-nz"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/567154","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=567154"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/567154\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/567155"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=567154"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=567154"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=567154"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}