Aon’s 2018 Local Government Risk Report for Australian Local Government has indicated the biggest areas of risk for the year were infrastructure and financial sustainability, however, many councils are failing to adequately prepare for these.
The analysis found the leading risks for councils in 2018 were:
Mr Paul Crapper, Aon’s head of local government, said this included delivering vital pieces of infrastructure.
What does this mean for asset managers?
Mr Crapper said that the rate at which the municipal is growing is another key factor which is affecting the infrastructure to take the lead as the greatest risk for councils in 2018.
“One of the big challenges is how do local governments deliver the assets that councillors want out of a budget, but at the same time, protect existing ones in the area,” he said in an interview with Canberra times.
“Councils going through such high levels of municipal growth are struggling to keep up with delivery of all the infrastructure required for that level of growth,” he said.
With the report highlighting infrastructure and asset management as key risk areas, it is as important as ever for local government to be constantly assessing the lifecycle and costs of their assets and make informed decisions on council infrastructure going forward.
Mitigating these risks proactively through insights on assets provided by new technology will ensure that the right decisions are being made on existing assets and the building of new infrastructure to accommodate growth.
Learn how to improve your asset management & optimise lifecycle costs at the Transforming Public Sector Asset Management Conference, 28th & 29th November 2018, Melbourne.