Kiwi tech businesses must focus on risk management

Kiwi tech businesses must focus on risk management

February 26, 2017

Kiwi technology businesses
need to ensure they are adopting risk management practices
to remain at the forefront of the world stage, Delta
Insurance says.

The New Zealand technology sector
has developed an outstanding global reputation for
innovation, however the ever-expanding scope of emerging
technology stand as both the industry’s greatest strength
and weakness, Delta Insurance general manager Craig Kirk
says.

He says New Zealand companies
should also consider tech liability insurance policies that
aim to protect businesses from incurring substantial
financial and reputational losses.
Delta Insurance is the
only locally owned and operated specialist liability
underwriting agency in New Zealand.
As New Zealand’s
third largest export behind dairy and tourism, the
technology sector is one of the most vibrant and promising
components of the New Zealand economy.

“Add to
this a supportive government, industry advocates and
educators (such as NZTech), along with few internal
constraints on expansion both in New Zealand and overseas,
it’s likely that we will see the technology sector
continue to boom and grow for years to come,” Kirk
says.

“In addition to creating value and thousands
of jobs, the local technology sector epitomises Kiwi
ingenuity and entrepreneurial flair. 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.

“Add to this a supportive government, industry
advocates and educators (such as NZTech), along with few
internal constraints on expansion both in New Zealand and
overseas, it’s likely that we will see the technology
sector continue to boom and grow for years to come.

“Yet 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.

“As New Zealand technology
businesses continue to expand their operations in a more
globalised world, their exposure to liability risks increase
in turn. Delta Insurance has just released a white paper on
technology liability that talks about the risks faced by
technology companies and how they can practically manage
them

“Operating in a more globally interconnected
business world not only increases risks to more litigious
overseas jurisdictions, but can leave businesses vulnerable
to a greater amount of cyber-risk.

“The risk of
cyber security threats is probably the key issue facing the
industry and each wave of cyber risk is becoming more
sophisticated and potent than its predecessor. How
technology companies tackle and manage this issue will in
some cases determine whether or not they have a viable and
sustainable future – the risk of getting it wrong could be
catastrophic.

“Delta Insurance believes that sound
risk management strategies which address new and evolving
forms of risk should be at the forefront of protecting
businesses.

“Dovetailing into these risk
management strategies should be insurance coverage that is
also constantly evolving to address new and varied exposures
that technology companies face. Even with the most robust
risk management procedures, litigation and disputes can
still arise.

“Despite companies’ and
organisations’ best risk mitigation efforts, an incident
triggering a technology liability can still arise. It is
here that tailored, up to date technology insurance policies
aim to fill in the gaps of traditional and often out of date
coverage and protect businesses from incurring substantial
financial and reputational losses.

“Through
proactive thinking, planning and innovation, we want to help
ensure that New Zealand technology companies continue to
grow and prosper so that they can remain at the forefront of
the world stage,” Kirk
says.

© Scoop Media

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