Australian businesses are facing mounting losses from unforeseen disruptions, with many still failing to adopt preventive measures despite acknowledging the threats.
FM’s latest report, “Sight Unseen: Navigating Out-of-Sight Risks,” created in partnership with The Economist, surveyed executives across various industries.
It found that more than 70% had experienced a financial hit from risks that were not foreseen in planning processes. These include not only data breaches and extreme weather but also broader supply chain interruptions and geopolitical shocks.
“Australian businesses face immediate challenges and financial consequences from climate change, cyber threats, and data breaches, which are already reshaping our economy and infrastructure,” said Andrew Stafford, operations manager at FM Australia – adding that the findings showed that organisations need to be more proactive in identifying and mitigating these risks before they escalate.
FM’s study revealed a pattern of awareness not translating into preparedness. While a majority of executives acknowledged the growing threat of disruptive events, 55% said the major risks they faced were unexpected, and 25% admitted to being underprepared.
In climate risk specifically, the report found a disconnect. Nearly a quarter of Australian firms did not consider it a top priority, despite the country’s well-documented vulnerability to natural disasters. Among Asia-Pacific countries, Australia ranked highest for deprioritising climate-related risk.
Cybersecurity was a high concern for 90% of respondents, although fewer placed emphasis on regulatory obligations around data protection, with only 11% flagging compliance as a major priority.
In addition, 81% highlighted risks to physical assets – such as equipment failure – as a pressing concern. However, the use of preventative measures remains limited. Only 29% said their companies employed engineering-based tools such as flood resilience systems, and just 8% had plans to do so in the coming years.
FM’s 2025 Resilience Index supported these findings, ranking Australia lower than many peer nations on climate preparedness. The index evaluated 130 countries using 18 resilience indicators, including infrastructure robustness, economic stability, and exposure to external shocks.
The urgency of improving risk strategies is echoed in Aon’s “Client Trends 2025” report, which explored how technology, trade, climate change, and workforce transformation are shaping the business risk landscape.
Aon identified the increasing adoption of AI and automation as a double-edged sword: while it improves operational efficiency, it also exposes firms to data security risks and regulatory scrutiny. In the workforce domain, businesses are reshaping hiring and training practices to match new technological demands, requiring a shift in how talent is managed.
The report also drew attention to the impact of environmental volatility on employee health and safety. With global natural disaster losses reaching US$368 billion in 2024, organisations are beginning to link climate resilience to broader human capital strategies, particularly for outdoor or mobile workforces.
Trade and weather disruptions were another focal point. Aon cited recent flooding in Spain that affected the automotive sector as an example of how extreme weather can ripple through global supply chains, disrupting production and delivery schedules.
