Business leaders need to focus on more than one risk facing their firm, with the growing amount of hazards being amplified by each other causing greater concern for companies, according to BDO.
BDO’s latest Global Risk Landscape report found the increase in risks meant 85 per cent of business leaders said their focus is on the connections between them rather than individual risk factors.
BDO’s national leader for risk advisory in Australia, Marita Corbett, said the interconnectedness between risks is rightly more of a concern for leaders than the individual hazards on their own, with 78 per cent of respondents agreeing risks are becoming more connected and complex.
“More and more we are seeing individual risks overlapping and amplifying each other with devastating and unexpected consequences. This is the risk multiplier effect and it can be more potent than individual factors,” said Ms Corbett.
“Today’s C-suite and boards are dealing with fragile supply chains, cyber criminals using AI to target high profile companies, an ever-evolving digital world, skills shortages, and climate goals that they must work to achieve. When these risks combine, the impact can…
