For a second time, environmental issues dominate the risk landscape, with climate change the standout risk in terms of both likelihood and severity.
- Environmental issues dominated with climate change the standout risk in terms of both likelihood and severity.
- Major trading partner weakness was perceived as the most likely economic risk as Japan recovers from the earthquake and tsunami, China’s growth slows and the US struggles with an uncertain outlook.
- Asset price collapse was rated the most severe economic risk, reflecting concerns about overseas asset pricing and uncertainty about the outlook for Australian property, especially housing.
- Demographic challenges were rated in the top five for both likelihood and severity.