A new survey reveals that Australian businesses are among the least equipped in the Asia-Pacific region to face rising challenges – especially in the areas of cybersecurity, artificial intelligence (AI), and financial risk.
The 2025 Global Business Sentiment Survey by Kroll shows that only 28% of Australian respondents feel “very prepared” to deal with the full range of business threats expected in the second half of the year. This figure puts Australia behind both the Asia-Pacific and global averages.
Cybersecurity remains a top concern for Australian firms, with more than three-quarters of surveyed companies reporting an escalation in threats over the past year. Website breaches and malware were among the most cited risks, while confidence in responding to global data privacy regulations was the lowest in the region.
“Bad actors and their toolkits continue to grow in sophistication; they’re leveraging AI and using better digital deception techniques. The reality is that every day there are significant threats to the security of data that are not being effectively managed,” said Maurice Burke, managing director of investigations, diligence and compliance at Kroll.
The scale of the problem is underscored by figures from the Office of the Australian Information Commissioner, which recorded 1,113 data breaches in 2024 – a 25% increase from the year prior. Burke emphasised the need for stronger detection systems and more robust internal processes, warning that Australian organisations must improve their intelligence-driven risk assessments to keep up with evolving threats.
AI is another area where businesses are feeling unprepared. Just 24% of Australian respondents said they are ready to integrate AI into their operations, a figure that trails most other countries in the region. Although AI is seen as both a transformative force and a major challenge, fewer than four in 10 companies surveyed reported having formal AI governance policies or leads in place.
The survey also points to broader concerns about economic resilience. Only a quarter of Australian business leaders expressed strong confidence in handling debt service and financial risks.
Among those who did feel confident, most credited their financial stability over leadership strength. At the same time, restructuring is on the table for nearly a quarter of companies—one of the highest rates in the region – with meeting growth targets and improving financial health cited as the key motivations.
Cem Ozturk, managing director of APAC investigations, diligence and compliance at Kroll, also warned that ongoing trade tensions and shifting tariff regimes could further strain Australian businesses.
“The outlook for Australian trade will ultimately depend on the level of tariffs, whether changing trade patterns induce supply disruptions, movements in the Australian dollar exchange rate, and the effect of trade policy uncertainty on global activity,” Ozturk said.
