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Media Release

August 27, 2004

Is business risky in South Australia?
World leading authority to talk on taking the fear out of risk management

South Australia needs to take a hard look at the risks facing its ability to attract business, develop home-grown industries, sustain the environment and provide jobs for its population if we’re to avoid becoming a second class state, according to a world leading risk and crisis management expert who will speak as part of UniSA International Business Week this Thursday.

Ageing infrastructure, a remote position in the world, an ageing population, earthquake-prone geology and the probability of a major urban bushfire are some of the risks specific to our region that we need to be thinking about now, according to Dr Robert Heath.

Associate Professor at the UniSA’s International Graduate School of Management, Dr Heath – whose advice and work has been used by the UK government, the BBC, UN Refugee Organisation, and three of the world’s top ten banks – says SA needs to get serious about risk management or risk becoming redundant in the global economy.

“South Australia could be living on borrowed time. Should the federal government move to a per-capita approach to funding, the State could see a downturn in overall income by as much as 20 per cent,” he says.

“There’s a three to five year time in which to get things right or move towards becoming a second-class state.

“Instead of advancing money into propping up an automotive industry why not look at re-skilling those involved? Why not look at possible national and global leadership in marketing sustainability – from university education and specializations through to investing in likely growth areas such as manufacturing biodegradable plastics and better commercial wind and solar power technology?

“South Australia and Adelaide can combine a distinctive leisurely lifestyle and hi-tech rich environments that can attract investment and population growth if managed actively and harmoniously.”

Other areas Dr Heath says SA would do well to focus on include becoming the key defence logistics base for Australia, uses of nanotechnology, seed production, education, and working to position SA as the central hub for transport and tourism in Australia.

And he says we also need to consider broader risks facing the whole of the Western world, from stock market volatility and the risk of Internet meltdown to rising health and education costs.

“Australia is not alone in appearing to reach limits on what can be spent in education and health – European Union and North American nations are also feeling constraints. Pressure on capacity to provide such services will continue, leading to demands for re-distribution of funding according to per capita and taxation volumes that will disadvantage smaller states such as South Australia and Tasmania.”

But it’s not all doom and gloom – in fact, one of Heath’s main points is that understanding human interactions in society, business and the world (including the environment), undertaking appropriate evaluation of the possible consequences for decisions, and planning to manage these consequences provides ways to alleviate fears associated with the plethora of risk surrounding us.

“People have traditionally seen risk management as a passive, post-decision activity, and they see it as frightening,” he said.

“I’m trying to get people to understand that risk management is active, that you use it to generate opportunities and directions to consider, and it’s not frightening at all.

“The world, and SA are not risk obsessed enough. They’re obsessed with the fear of risk – not risk itself.”

Harnessing risk management for business momentum and success – a blueprint for South Australia, South Australian businesses and export success

WHO: Dr Robert Heath, Associate Professor in Strategic Risk Management,
University of South Australia

WHAT: International Business Week luncheon, presented by UniSA and Austrade

WHEN: Thursday, September 2, 12 noon – 2.00pm

WHERE: Rockford Adelaide, 164 Hindley Street, Adelaide.

This event is aimed at executive and senior managers.
To register go to www.austrade.gov.au/SAIBWRiskManagement

About the presenter

Dr Robert Heath is Associate Professor in Strategic Risk Management, University of South Australia, and consults nationally and internationally in risk, crisis and strategic management. His book, Crisis Management for Managers and Executives (Financial Times/Pitman Books, 1998) has been translated into Chinese, Russian, Ukrainian and most recently Greek editions. He is currently listed for his work in developing risk and crisis management theory and practice in the international edition of the Marquis Who’s Who in the World (2003), Who’s Who in the Health Sciences (2003), and Who's Who in Science and Engineering 2003, 2004, (6th & 7th Editions).

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