Australian SMEs nominate lack of demand and overstocking as their major worry, while reputation risk is the fastest-growing concern, a Zurich survey has found.

“Several risks rated as being more critical than in the past, with reputation damage showing the biggest jump over the years,” the insurer says.

About 11% of respondents name reputation damage as a key risk, up from 1.6% in 2013.

Lack of consumer demand concerns 26% of Australian respondents, similar to three years ago.

The Australian responses form part of Zurich’s third annual global SME survey, which polled 2600 executives and managers across 13 countries.

Businesses in Asia-Pacific – including Australia and Hong Kong – are also worried about fire, cyber crime, technological vulnerability, health and safety of customers or employees, and corruption.

The survey finds the biggest opportunities for Australian SMEs are likely to arise from new customer segments, followed by cost reductions.

Diversification of product ranges or services jumps up the opportunity rankings to third place, while new business technology also rates highly.

Globally, the effect of competition on margins and lack of consumer demand remain key concerns for nearly a third of SMEs.

The number of respondents concerned about cyber crime has almost tripled between 2013 and this year, while reputational damage has more than doubled.

In the US, risk awareness has risen across the board.

“Interestingly, technology failures and vulnerabilities feature among the top three risks in the US – significantly higher than in the other regions surveyed,” Zurich says.

Survey participants were asked to identify up to three risks they face and up to three growth opportunities.