Companies across the world see regulatory change as the second biggest risk to their business after the economic slowdown, a study suggests.

Companies across the world see regulatory change as the second biggest risk to their business after the economic slowdown, a study suggests.

The survey of 551 organisations by consultancy firm Aon, identifying the ‘top ten risks’ to business, finds that the economic slowdown has moved to first place in the list, seven places higher than in 2007 (see table below).

Regulatory or legislative change has climbed from sixth to second place, while ‘business interruption’ comes in third, down one place compared to two years ago.

Risks that have fallen down the list, while still remaining in the top ten, include damage to reputation, distribution or supply chain problems, and failure to attract top talent.

Most organisations report that they are ready for the risks they face. However, there are three risks that fewer than two-thirds of organisations feel prepared for: damage to reputation (58 per cent), the economic slowdown (60 per cent) and regulatory change (65 per cent).

Aon surveyed organisations in 40 countries.

2009 Aon Global Risk Management Survey
Top Ten Risks

1 (+7) Economic slowdown
2 (+4) Regulatory/legislative changes
3 (-1) Business interruption
4 (new) Increasing competition
5 (new) Commodity prices
6 (-5) Damage to reputation
7 (new) Cash flow/liquidity risk
8 (-4) Distribution or supply chain failure
9 (-6) Third party liability
10 (-3) Failure to attract/retain top talent