'Changes in legislation and regulation' will be the top business risk in Australia this year with companies concerned about increasing and more onerous regulation, according to the Allianz Risk Barometer.
36% of respondents rated it as the number one risk, up from the third spot last year (with 28%).
'Business interruption' remains in second place at 32%, followed by 'cyber incidents' at 30% which has moved down from its number one spot in 2018.
While the risk of cyber incidents has moved down in the rankings this year, it is still a major concern for Australian businesses with 61% of Australian respondents citing cyber incidents as the cause of business interruption they fear the most.
Sentiment around the impact of 'new technologies' ranks as the fifth highest business risk in Australia for 2019 but is seen as a double-edged sword.
When asked which new technologies are the most useful or valuable for a company, the top answer from 80% of respondents was artificial intelligence.
Yet when asked which new technologies pose the greatest risk on a business, 66% of Australian respondents again answered with artificial intelligence.
Allianz Global Corporate & Specialty Pacific's CEO Willem Van Wyk said that the rapid pace of change is influencing business risk concerns.
“The increased pace of change, both in terms of legislation, regulation, market disruption and new technologies, is heavily influencing business risk concerns within the Australian market.
“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.
“Regardless of the cause of disruption, the financial loss for companies following an event can be enormous.
“New risk management solutions, analytical tools and innovative partnerships can help to better understand and mitigate the myriad of risks facing business and prevent losses before they occur.”