Reports show that confidence is down, however for some Australian businesses, post election governments – along with their policies – will come and go. It is those that have taken an approach of resilience and look beyond the election cycle that have their business strategies intact.
Typically elections cycles and the period post-elections are marked by poor market performance and consumer confidence, “Uncertainty created by the election has certainly not helped support business action and this is probably not going to be addressed immediately after,” commented Rupert Posner, CEO for Good Environmental Choice Australia and Advisory Board member for Australian Sustainability Conference.
Many businesses within the sustainability sector have seen both strategic and financial benefits of an approach of resilience that not only successfully navigates disruptions, such as election cycles, but can also create longterm value.
Highlighting the importance of this approach is a recent study showing that: 1. Over 90% of businesses were committing to sustainability and environmental policies and the same number had a dedicated environ- For more than two years from late-2010, the Australian dollar was usually valued above the US dollar. This created unprecedented value for local importers and squeezed the margins of exporters, particularly manufacturers and farmers.
However, the Australian dollar dipped back below parity with the greenback in May this year and has recently hovered on either side of the 90-cent mark.
This has reversed the conditions. Many small businesses that trade in imported goods are now feeling the pinch thanks to reduced mental team. 2. The number of organisations that had completed energy efficiency and reduction plans to make their business more resilience and profitable was over 80%
“From the discussions that we have with businesses within the sector, there is no doubt that if companies fully understand and address cash flows. On the other side of the depreciating Australian coin, export conditions are much more favourable.
Risks to importers
Despite the tighter cash flows, Mr. John Phillips, Vero’s chief underwriting & portfolio manager – commercial, has urged importers to resist the temptation to reduce their insurance coverage.
“Unfortunately, insurance is often a low priority for small businesses, even at the best of times. However, the minor savings you will make by reducing your coverage will be heavily outweighed by the potential losses after an sustainability issues from a long-term perspective they will enjoy economic and business benefits irrespective of the vagaries of elections and government policies,” said Posner.
“This is, of course, not to diminish the importance of well thought out government policy and working with both sides of government to see business action supported.” For exporters, the current conditions will encourage an increase in export activity. Some small businesses may even take the opportunity to enter export markets for the first time.
Importantly though, as soon a business begins to export overseas, it becomes exposed to new risks.
“Most businesses will have product liability insurance in place to cover themselves from any loss, damage or injuries caused by their product. However, many product liability policies only cover domestic sales, not overseas exports,” said Mr. Phillips.
“Once you export your products overseas, particularly to markets like the USA, you have to extend your insurance to cover your new risk exposures.”