About three-quarters of New Zealand directors believe their boards spend more time discussing risk management than they did two years ago.

The second biennial Directors’ Risk Survey by Marsh and the Institute of Directors shows technological disruption and reputational risk remain leading concerns for directors.

Institute CEO Simon Arcus says cyber risk has emerged as a key external risk for the first time.

More than one-third of directors admit they are unable to keep up with technological advances.

“Technology is an integral part of business capability and boards need to take responsibility to be able to lead in this new era,” Mr Arcus said.

Marsh Executive Director Steve Walsh agrees technology is a critical part of any business’ operation.

“Any organisation that doesn’t have strategies in place to deal with [technology] issues, such as cyber, is leaving themselves hugely exposed,” he said.

Directors’ perceptions of the leading personal risks eased slightly on 2013 results, with reputational risk the top concern for 61.3% of respondents (down from 62% in 2013), followed by personal liability for a legislative breach at 39.2% (42%) and loss of personal assets at 38.1% (42%).