Simon Arcus: ‘Disruption will happen, it’s not a case of if but when, and directors being involved in the conversation is good news.’ Technological disruption has gained prominence as a business risk, and is a new entrant to the top 10 risks for New Zealand directors. Despite that, just 27 per cent of boards regularly discuss cyber risk and are confident about their company’s capacity to respond to an attack or incident, according to the Institute of Directors. The latest IoD NZIER Director Sentiment Survey, notes technological and business disruption, and the time spent on risk oversight are key challenges for directors. “Most businesses use or rely on technology to operate – cyber risk is a reality of our times– so the ability of boards to consider it as part of enterprise risk is critical in ensuring directors are confident about business resilience,” says IoD CEO Simon Arcus. Technological advances are disrupting many traditional business models, forcing businesses to find ways to adapt to the rapidly changing environment. “How they deal with disruption is going to be a big question for the future,” says Arcus.The survey, now on its second year, was conducted in October and covered 820 IoD members. Technology disruption is number 6 in this year’s top 10 risks for Boards.Cyber risk is a reality of our times – so the ability of boards to consider it as part of enterprise risk is critical in ensuring directors are confident about business resilience.’ Simon Arcus, NZ Institute of Directors The survey finds most directors (73 per cent) are spending more time on risk than a year ago yet only half say they have the capacity to deal with increasing business complexity – and 47 per cent expect to face major disruption within the next two years. It’s critical that in a volatile and changing world, boards regularly consider the long -term sustainability of their business models – and most boards (79 per cent) are doing this, according to the IoD report.Arcus says disruption will happen, it’s not a case of if but when, and directors being involved in the conversation is good news.“Developing board and organisational capability are areas of focus for directors to ensure organisations are resilient, so it is pleasing to see that 60 per cent of boards agree diversity is a key consideration and 62 per cent regularly discuss composition for the future,” says Arcus.“Diversity of thought and experience brings a broad range of perspectives to the boardroom and increases the potential for successful and effective risk oversight.” Directors are somewhat less optimistic about economic performance than a year ago but are still buoyant about business performance. They see global growth, labour quality and red tape as the main barriers to business and economic performance. The results show 67 per cent expect the performance of their company to improve, down from 71 per cent in 2014, while 35 per centexpect the New Zealand economy to improve, down from 47 per centin 2014.Laurence Kubiak, CEO of the New Zealand Institute of Economic Research (NZIER), highlights concern shown by many directors about the global economy. “There have been increasing concerns about the growth outlook of China, which is a key market for many of our businesses.”Nonetheless, directors were more positive about the New Zealand economy than businesses surveyed in NZIER’s latest Quarterly Survey of Business Opinion. “More recent developments show an improvement in economic conditions, and that has likely improved directors’ confidence about the economy.”The IoD says it is pleased to see the improvement in health and safety leadership, with 60 per cent saying they have the capability to comply with the new legislation, up from 51 per cent in 2014. Just 8 per cent say they are not ready.No caption Send news tips and comments to divina_paredes@idg.co.nzFollow Divina Paredes on Twitter: @divinapFollow CIO New Zealand on Twitter:@cio_nzClick hereto read the Spring 2015 edition of CIO New ZealandSign up for CIO newsletters for regular updates on CIO news, views and events.Join us on Facebook.Join the CIO New Zealand group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers. Related content brandpost Sponsored by SAP When natural disasters strike Japan, Ōita University’s EDiSON is ready to act With the technology and assistance of SAP and Zynas Corporation, Ōita University built an emergency-response collaboration tool named EDiSON that helps the Japanese island of Kyushu detect and mitigate natural disasters. By Michael Kure, SAP Contributor Dec 07, 2023 5 mins Digital Transformation brandpost Sponsored by BMC BMC on BMC: How the company enables IT observability with BMC Helix and AIOps The goals: transform an ocean of data and ultimately provide a stellar user experience and maximum value. By Jeff Miller Dec 07, 2023 3 mins IT Leadership brandpost Sponsored by BMC The data deluge: The need for IT Operations observability and strategies for achieving it BMC Helix brings thousands of data points together to create a holistic view of the health of a service. By Jeff Miller Dec 07, 2023 4 mins IT Leadership how-to How to create an effective business continuity plan A business continuity plan outlines procedures and instructions an organization must follow in the face of disaster, whether fire, flood, or cyberattack. Here’s how to create a plan that gives your business the best chance of surviving such an By Mary K. Pratt, Ed Tittel, Kim Lindros Dec 07, 2023 11 mins Small and Medium Business IT Skills Backup and Recovery Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe