Lockton has released a guide encouraging Australian companies to revisit their risk management and insurance frameworks in light of shifting global trade dynamics, particularly around tariffs.
The guide, designed for business leaders involved in global sourcing and supply chain operations, provides practical steps to assess exposure to tariff-driven disruptions and highlights insurance considerations relevant to such scenarios.
According to Lockton, tariffs can introduce unexpected costs and delays, and businesses must understand how these disruptions may impact operations and financial performance.
The firm recommends identifying goods and services at risk of tariff exposure and reviewing how insurance arrangements align with those risks.
The guidance is directed toward executives managing global procurement, risk and compliance teams, finance professionals preparing for tariff-related impacts, and insurance advisors reviewing policy adequacy. It also speaks to those involved in continuity and contingency planning.
Lockton listed several internal questions to help businesses evaluate their resilience. These include:
Organisations are also encouraged to reassess supply chain dependencies, model financial scenarios involving tariff changes, and explore alternative markets or suppliers to reduce exposure. Scenario planning and regular policy reviews are suggested as immediate risk management actions.
The guide has been published as trade policies are already weighing on executive sentiment, according to recent data from the US.
The CEO Confidence Index from Vistage dropped sharply in the first quarter of 2025, falling from 100.8 to 78.5 – one of the largest declines since the onset of the COVID-19 pandemic.
Vistage’s chief research officer Joe Galvin said the drop reflects a shift from optimism to caution.
“The high confidence in the previous quarter was likely driven by optimism about what the new administration might accomplish, while the current reading reflects the reality of ongoing economic challenges,” he said.
Trade uncertainty was cited by 69% of US CEOs as a key concern. Galvin noted that current policies are perceived as inflationary and disruptive, undermining long-term business planning.
In Australia, economic stress is also mounting. Data from CreditorWatch’s latest Business Risk Index showed that company insolvencies increased in February after a brief seasonal dip.
Chief economist Ivan Colhoun said insolvency levels are likely to remain high.
“Given the economic and cost pressures and continuing high levels of accumulated ATO tax debt, it’s too early to expect the level of insolvencies to reduce much in the period immediately ahead,” he said.
The trend aligns with findings from Allianz Trade’s Global Insolvency Report, which also points to sustained financial pressure on businesses globally.
