1. Disruption through technology and new operating models
Boards need to identify emerging operating models, technological trends and new start-up competitors. Companies like Uber have transformed long established industries. It’s time to strategically plan for disruption.
2. Economic slowdown (global instability/political uncertainty)
2019 is likely to bring significant financial insecurity. The RBA recently said “the Australian economy is in uncharted waters”. A federal election is looming and the impact of the Banking Royal Commission on lending will impact consumer confidence. There are also global factors, like the trade war between the US and China and Brexit, that will continue to create economic and political uncertainty.
3. Cyber theft or breach of data privacy legislation
Large-scale attacks and disruptions of computer networks using computer viruses, or physical attacks using malware, continues to cost organisations (extortion/data recovery costs/regulatory penalties), including the embarrassment of explaining the data loss to those effected. IT security controls and business continuity plans (covering loss of key staff/supplier/customer/IT system and terrorism) need to be regularly stress tested.
4. Culture and conduct (fraud/customer trust deficit)
As we have witnessed through the Royal Commission, nothing destroys brand value quicker than acting unethically. Lack of strong governance and leadership can lead to breaches of regulatory requirements, fraud, loss of customer trust and ultimately, sustainability. Culture and conduct will be key issues in 2019.
5. Social issues (mental health, diversity, climate change)
These are challenging times. Rising energy costs, mental health issues, addictions (drugs/alcohol/gambling), housing affordability, social media pressures, MeTwo movement, gender equality and climate change all have impact on our lives. It is time to focus on more than just profit!
6. Miss watching the Hawks …..
Just a reminder to turn risk into opportunity in 2019 and enjoy life.
A sincere thank you to those that have supported JNW throughout the year.
From my family to yours, Merry Christmas and have a safe and fun 2019.
JNW Strategic Consulting