Councils failing to address human impacts on risk management


Professional services and risk management firm, Aon, has released its 2018 Local Government Risk Report for Australian Local Government, finding that more than half of all councils are failing to execute simple practices to rein in human impact on Local Government risk.

The report, the 4th national risk survey of the sector with close to 100 risk management executives responding, found that financial challenges of infrastructure, financial sustainability and stability continue to lead the list of risks for local government. However, health and safety, cyber, reputation and human resources concerns have all leapt higher.

After a relatively benign 2017 nationally, weather dropped way down the list of risks. Soon after Aon’s survey concluded however, Darwin faced Cyclone Marcus; Tathra, NSW and Victoria’s South West were devastated by bushfires; and North Queensland was flooded.

The report concluded that councils were seeking out better insurance and risk management arrangements.

“Two years ago fewer than one in ten councils leveraged independent brokers and commercial insurance – today one in four is testing the market. Getting coverage right is critical – 86 per cent of councils made claims in the last 12 months.”

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