Australian companies up focus on external risks after 2011 floods and earthquakes - Aon

For the first time in a decade, external risks have overtaken internally-focused corporate risks for Australian companies, according to Aon’s 2011/12 Australasian Risk Survey.

The widespread floods across Queensland and Victoria, Cyclone Yasi and multiple earthquakes in Christchurch, New Zealand, have impacted many businesses’ approach to risk.

“2011 was a year when many organisations across Australia and New Zealand were severely impacted by an array of factors beyond their control,” said Aon Risk Solutions managing director – corporate, Paul Venning.

“From some of the most devastating natural catastrophes in history, through to the fallout from the European debt crisis, companies have been faced with increasing challenges from external risks.”

Companies across Australia and New Zealand responded to the rise in external risks in a number of ways. The natural disasters prompted 71% of companies to undertake a formal review of their insurable risk tolerance levels while more organisations sought an external professional opinion on their level of risk tolerance.