Simon Arcus: 'Disruption will happen, it\u2019s 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\u2019s 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. \u201cMost businesses use or rely on technology to operate \u2013 cyber risk is a reality of our times\u2013 so the ability of boards to consider it as part of enterprise risk is critical in ensuring directors are confident about business resilience,\u201d 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. \u201cHow they deal with disruption is going to be a big question for the future,\u201d 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 \u2013 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 DirectorsThe 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 \u2013 and 47 per cent expect to face major disruption within the next two years.It\u2019s critical that in a volatile and changing world, boards regularly consider the long -term sustainability of their business models \u2013 and most boards (79 per cent) are doing this, according to the IoD report.Arcus says disruption will happen, it\u2019s not a case of if but when, and directors being involved in the conversation is good news.\u201cDeveloping 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,\u201d says Arcus.\u201cDiversity of thought and experience brings a broad range of perspectives to the boardroom and increases the potential for successful and effective risk oversight.\u201dDirectors 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. \u201cThere have been increasing concerns about the growth outlook of China, which is a key market for many of our businesses.\u201dNonetheless, directors were more positive about the New Zealand economy than businesses surveyed in NZIER\u2019s latest Quarterly Survey of Business Opinion. \u201cMore recent developments show an improvement in economic conditions, and that has likely improved directors\u2019 confidence about the economy.\u201dThe 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 captionSend news tips and comments to email@example.comFollow Divina Paredes on Twitter: @divinapFollow CIO New Zealand on Twitter:@cio_nzClick hereto\nread the Spring 2015 edition of CIO\nNew 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.\nThe group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.