Auckland-based Delta Insurance has called out New Zealand technology businesses on risk management procedure and warned that the nation would slip from the world stage without proper mitigation strategies.
The technology and fintech sector, New Zealand’s third largest exporter, could be hampering the progression of the nation on a global scale due to its businesses not suitably militating against Cybersecurity risks with specific management strategies.
Delta Insurance general manager, Craig Kirk, said the New Zealand tech sector had worked hard to develop a strong global reputation and that offerings to protect from financial and reputational loss, including tech liability insurance policies, would be needed to move forward with minimal risk.
“In an increasingly globalised world, an industry which often relies on multi-regional interconnectivity faces a host of potential problems that can endanger businesses both large and small,” Kirk said.
“With exports amounting to nearly $7 billion and total revenue predicted to exceed $10 billion in 2017, the technology industry is carving out its own niche on the global stage, as well as shaping up to be an integral part of the New Zealand economy.”
Kirk said government support in New Zealand along with the recent establishment of various sector specialist bodies would significantly boost the tech space.
“As New Zealand technology businesses continue to expand their operations in a more globalised world, their exposure to liability risks increase in turn,” he said.
“Operating…increases risks to more litigious overseas jurisdictions, but can leave businesses vulnerable.”
Kirk said the methods which companies took to tackle and manage Cybersecurity risks would be the catalyst determinant for the viability and sustainability of the fintech scene in the future.
“The risk of Cybersecurity threats is probably the key issues facing the industry…the risk of getting it wrong could be catastrophic,” he said.
“Each wave of cyber risk is becoming more sophisticated and potent than its predecessor.”
