​WA diverged from rest of Australia and voted assets and infrastructure as its number 1 risk.

JLT's seventh annual risk report has once again highlighted how WA local government's experiences differ from their east coast cousins. While financial sustainability and cyber security continue to buck a five-year trend of being the most prominently identified risks to local governments across Australia, the results from WA offer a slightly different outlook.

WA was the only state to identify assets and infrastructure as its top risk, indicative of the unique challenges we face. Executing strategic planning and innovative funding are more important than ever in upgrading critical infrastructure in a time with increased maintenance costs. Furthermore, Western Australia's vulnerability to catastrophic events, especially in regional areas north of the 26th parallel may also be a good indication of why assets and infrastructure concerns are so prominent in our state. Striking a balance between long-term investment plans and immediate repairs is essential for building and maintaining resilient infrastructure and thus remains a key challenge for WA local governments and a primary focus for LGIS.

CEO/GMs across the nation ranked their risks through 1 to 10.

Top 10 - Australian Local Government Risk Rankings from the 2024 JLT Risk Survey:

1. Financial sustainability – The foremost risk for the sector, primarily driven by funding challenges.
2. Cyber security – Cyber security remains an ongoing concern for Australian councils, many of whom have communicated concerns about their IT infrastructure and its capacity to manage ongoing risks.
3. Assets and infrastructure – Financial constraints exacerbated by workforce shortages and inflation have been deemed to hinder maintenance and upgrades which are essential for long-term sustainability.
4. Disaster and catastrophe – Councils have continuously acknowledged the unpredictability of both man-made and natural disasters, reinforcing this risk as a top concern.
5. People and culture – Substantial issues in attracting and retaining professional staff remains a challenge for Australian councils, indicative of the importance of initiatives to enhance workforce engagement.
6. Climate change – Unpredictability and insufficient revenue required for the undertaking of adequate adaptation measures renders climate change a considerable issue for government councils.
7. Business Continuity Planning – Highlighting the need for councils to invest in risk management, business continuity remains a key risk area for councils, especially regarding destruction from disasters.
8. Statutory/Regulation – Growing apprehension regarding legislative changes have triggered ongoing risks relating to non-compliance with regulatory standards; with access to a qualified workforce becoming a major issue.
9. Reputation – Informed investments and value for money services are the cornerstone of community trust building, highlighting the importance of strong leadership and integrity.
10. Liability Claim – Civil liability claims can harm the reputation of councils and often lead to financial loses. Implementing strong risk management strategies is therefore an area of paramount importance.

The Top 5 Risks for WA:

1. Assets and infrastructure
2. Financial sustainability
3. Cyber security
4. Climate change
5. Disaster/catastrophic events

The 2024 survey also offered unique insights into regional risks. Understanding and identifying risks on this level can inform members decision making, refine resource allocation and better direct planning.

More information

For full details about the JLT public sector risk report we encourage members to check out the risk report web page where you can download the full report.