Risk vs growth: what ANZ and Canva reveal about leadership in uncertain markets
Two headlines. One dilemma. This week, ANZ and Canva have landed on opposite ends of the risk spectrum. ANZ is pulling back on compliance spend while under regulatory scrutiny. Canva is doubling down on growth despite mounting losses. Yet both stories point to the same underlying tension: how much risk are leaders willing to carry for the promise of future reward?
At Morgan Shaw Advisory, we see this dilemma play out daily in SME boardrooms. Owners and founders are constantly weighing short-term stability against long-term upside. Our EBITDA+ SIX STEPS TO SUCCESS™ framework is designed to help leaders make these decisions with clarity, balancing ambition with accountability. Whether you are preparing for a sale, raising capital or scaling operations, understanding how risk and growth interact is no longer optional. It is essential.
Why this matters now
The Australian finance landscape is heating up. In the past week alone:
ANZ has come under fire for declining funding requests for seven ASIC remediation programs, even as it works through the largest corporate fine in its history.
Canva’s long-delayed accounts show significant statutory losses, but also strong operating cash flow. These are classic signs of a tech company investing for dominance.
M&A activity is surging, with Reece launching a $250 million buyback, Platinum AM shareholders approving a $16.7 billion merger with L1 Capital, and Great Southern and P&N pursuing a $30 billion merger to create a new national bank.
Gold Road investors have signed off on a $3.8 billion takeover by Gold Fields.
Pfizer has re-entered the obesity drug race with a $7.3 billion acquisition of Metsera.
These moves reflect a broader market trend. Leaders are making bold bets. But in doing so, they risk underestimating regulatory exposure or overestimating growth potential. For SME owners, this environment demands sharper decision-making. The cost of getting it wrong, whether through compliance failures or unsustainable expansion, can be catastrophic.
Two models of leadership: ANZ and Canva
ANZ: capital discipline at the cost of compliance?
Leaked documents suggest ANZ has stripped tens of millions from non-financial risk budgets at a time when regulatory scrutiny is intensifying. Compliance teams reportedly warned that underfunding risk controls today could cost far more tomorrow.
This is a case of capital discipline clashing with operational integrity. While cost-cutting may appeal to shareholders, it can erode trust, invite penalties and damage long-term value.
Canva: burn now, dominate later
Canva’s financials reveal a company following the Silicon Valley playbook. Invest aggressively, capture market share and monetise later. Statutory losses may look alarming on the surface, but strong cash flow and operating resilience suggest a business built for scale.
This model works, until it does not. Without clear governance and a path to profitability, growth can quickly become unsustainable.
What SME leaders can learn
At MSA, we help SME leaders navigate this tension through our EBITDA+ SIX STEPS TO SUCCESS™ methodology. Whether you are scaling or selling, our framework ensures that growth is matched with governance.
We have seen clients fall into both traps:
One founder slashed compliance spend to boost short-term EBITDA, only to face a failed sale when buyers uncovered regulatory gaps.
Another invested heavily in marketing and tech, but lacked the financial controls to support expansion. This led to cash flow issues and a distressed exit.
Our approach includes:
Exit readiness assessments to identify hidden risks
Strategic planning to align growth with compliance
Gap analysis to uncover vulnerabilities before they become liabilities
Five questions every SME leader should ask
Are we funding compliance and governance adequately for our growth ambitions?
What would a regulator or acquirer find if they reviewed our risk controls?
Is our growth strategy backed by sustainable cash flow?
Are we prepared for the scrutiny that comes with scale?
How do our decisions today affect our valuation tomorrow?
Ready to grow with confidence?
If you are navigating growth or preparing for a transaction, now is the time to assess your risk posture. Book a strategic consult with Morgan Shaw Advisory to explore how our proven frameworks can help you grow with confidence and exit with strength.
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