Cyber risk is firmly on the radar of New Zealand business leaders

This year’s NZ Herald Mood of the Boardroom survey captures the views of the country’s leading chief executives, company chairs and business leaders on the issues affecting New Zealand businesses, with cyberattacks identified as a prominent concern both domestically and internationally.

Mark Jones, Gallagher Chief Broking Officer, says while businesses can’t control many of the issues weighing on business confidence, cyber is one risk they can take practical steps to prepare for.

“Businesses are dealing with numerous risks outside of their control, from global geo-political and economic uncertainty to domestic inflation, increasing energy costs and general cost of living issues. We can’t change those things for our clients, but we can help them understand and prepare for their cyber risk. That means looking at where they may be exposed, how they can strengthen their resilience and whether they have the right protection in place if something goes wrong,” he says.

While the survey reflects the views of some of New Zealand’s most senior business leaders, cyber risk isn’t limited to large organisations. Businesses of all sizes rely on technology and information to support their day-to-day operations, and a cyber incident can cause disruption, financial loss and have wider impacts on customers, suppliers and reputation.

We’re seeing that play out in the cyber insurance claims we’re receiving from our clients. Business email compromise and phishing account for 23% of attack types, followed closely by payment and funds transfer fraud at 21%.  

Mark says these claims show just how varied cyber risk can be.

“Cyber incidents don’t always start with a major system attack. Our clients are being affected by payment fraud, phishing attacks and compromised accounts, often through everyday interactions and processes. That’s why it’s important to understand where your business could be exposed and have a considered risk management programme in place that includes mitigation measures and potentially insurance protection as well.”

Behind every claim is a business dealing with the consequences, whether that’s financial loss, disruption or the time and resources needed to respond and recover. Cyber insurance is one part of being prepared, alongside good security practices, planning and knowing how you’ll respond if an incident occurs.

A timely reminder to check your systems

Cyber risks are continually changing, and recently identified vulnerabilities affecting PHP are a good example. PHP is technology commonly used to support websites, web applications and other online services. Its widespread use means businesses may be exposed without even realising it.

If your website or other online services use PHP, it’s vital to check whether they could be affected and if the appropriate security updates have been applied. If you’re unsure, talk to your IT provider or website host and ask them to check. It’s also worth speaking with any third-party technology providers you rely on for critical services to understand whether there is anything you need to do.

At the same time, the growing use of artificial intelligence is changing the cyber landscape, with the potential to make phishing, social engineering and other attacks more convincing and easier to scale.

As technology and cyber threats evolve, businesses need to keep reviewing where they may be exposed and whether their approach to managing cyber risk still reflects the way they operate. Every business is different, and the systems you rely on, the information you hold and the way you work will all shape your cyber risk and the protection you need.

Cyber risk can’t be eliminated altogether, but there are practical steps businesses can take to be better prepared. From large corporate organisations to sole traders, we can help you understand your exposures, consider the insurance protection that’s right for your business and support you if something does go wrong.