Companies in Australia are feeling confident about the 2015 business landscape, which is encouraging them to take more risks, according to a recent report from management software and solutions provider Sage.
The Sage Business Index 2014 is an annual measure of sentiment across small to medium enterprises (SMEs) across the globe. Australian SMEs were included in the survey for the first time this year, and the results showed local businesses were among the most confident in the world.
More than half of the organisations surveyed by Sage (53 per cent) identified as risk-seekers, compared to the global average of just 49 per cent. The same number (53 per cent) claimed to be optimistic about growth in 2015, expecting turnover to increase by around 0.6 per cent.
While this suggests the Australian economy and corporate industry are in a good position for growth, the increased desire to take risks can put companies in a dangerous position. This is why it is crucial that any organisation branching into new territories, markets or practices revises its business insurance needs to ensure it remains covered no matter what changes could result from these risks.
Good conditions for risk-taking
SME confidence is largely being inspired by an improving economy, according to the study. Australia businesses rated the local economy at 54.52 points on the Sage Business Index – close to 3 points over the global average. At the same time, international sentiment is high in Australia, with local enterprises rating the world's economy 2.47 points above the global results.
"Confidence has been on the rise for some time but we appear to have reached a global tipping point where for the first time businesses are optimistic about the prospects for their business, their national economy and the global economy," the report explained.
Planning to take risks in 2015?
Risk management is a vital concern for any business, even when not actively seeking out these conditions. If you are planning to increase risks for your company in 2015, it is crucial that you protect yourself, your staff and your enterprise from any potential negative repercussions.
Business insurance is perhaps the most important risk management strategy you can have in place, but getting the right level of cover can be difficult for a growing company.
Knowing what policies and products are right for your business can be tough, which is why it pays to get the right advice and guidance. Talking to an insurance broker in Perth should be your first step when considering risks in the New Year.