Biggest Risk for FY27
The “million-dollar question” has always been “What is the biggest risk facing business right now?” So, let’s explore a few current risks heading into the financial new year. But let’s also do it with the lens of opportunity. Risks are most valuable to us if we can turn them into opportunity.
With recent work health safety legislation updates, psychosocial risks should be at the forefront of every manager’s mind. Aware managers are asking “What are the risks in my organisation?” Insightful leaders are asking “How can I build a stronger business by closing these gaps?”
Information security has been a concern for many years now. It includes cybersecurity and the requirement to meet privacy legislation. The landscape here is constantly changing, particularly with rapid technological advancement, and the threat from very organised bad actors is real. Managers who rely solely on technology partners and service providers are ignoring their own responsibility. Insightful leaders are asking what risks are introduced with every change in the organisation.
Artificial Intelligence or AI is the term on everyone’s lips. For slow moving organizations it’s barely made a dent. But for faster moving organizations it’s completely transforming their way of working. Chances are your organization is somewhere in between. AI governance requires us to consider what and how we use AI, but also the impact that has on individuals, groups and societies. I am yet to see any business do this with any rigour yet. Many have barely addressed the impact for staff and customers, let alone wider stakeholders. Managers are drafting policies. Insightful leaders are testing their processes.
These are 3 big risks going into FY27, but I believe there is an even bigger risk. Complacency from top management combined with an inability to reframe risks into opportunities becomes the biggest risk to any business. There may be costly gaps to close, but the opportunity is to build an organisation that will sustain rapid change.
Change is only getting faster. If we don’t have strong foundations and risk-based decision making we might choose the wrong path, or worse, get left behind.
Is that a risk you’re prepared to take?
The Author
With over 30 years’ experience, from engineering and manufacturing through to consulting, facilitation and speaking, Lauren’s passion and expertise is in helping leaders build businesses for the future.
She helps organisations become “future fit” through pragmatic application of risk management in strategic planning and management systems. Lauren is also passionate about developing future fit leaders through essential leadership skills.
Her book 10% Better – Taking Organisations from Ordinary to Excellence has been acclaimed as a practical and hugely helpful guide for business leaders.
