A BDO expert on small business risks
Andrew Sloman, the National Leader of BDO’s Risk Advisory Team, discusses New Zealand business owners approach to risk, and how they can no longer afford to avoid proactively identifying risk and mitigation.
New Zealanders may be famous for our “number eight wire” approach, but it’s a risky attitude in an increasingly uncertain global business environment.
In our recently released BDO Global Risk Landscape Report, canvassing 500 business leaders across 44 countries, we found an overwhelming 87 per cent of respondents thought the world has become a riskier place.
But despite the rising tide of risk, I see regular evidence that suggests that New Zealand businesses still lag when it comes to taking a proactive stance on formally identifying and mitigating the risks they face.
We have a mindset in our business culture that, if a risk presents itself and we haven’t the controls in place to mitigate its effect, then somehow we’ll work our way through it anyway. We’re more likely to accept the risk happening and then try to deal with it, because culturally we’re “she’ll be right” Kiwis.
However, in an increasingly global trading environment, New Zealand businesses can no longer afford to avoid proactively identifying risk and mitigation.
We’re all so incredibly interconnected now in this globalised world, so New Zealand businesses need to pay attention to risks external to our borders, and not just those in their own backyard.
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