“Brand and reputation” has moved into second place behind natural disasters in Marsh’s annual survey of leading risks for New Zealand executives.

Marsh Country Head Marcus Pearson says brand and reputation is not a new risk, “but the use of modern technologies has made managing an entity’s corporate standing a lot more challenging”.

“Misinformation, in particular, can spread instantaneously on social media and be created anywhere in the world with just a few simple clicks.”

Fire, flood or another natural disaster tops the list for the fourth year in a row, while business disruption due to an IT issue ranks third. Loss of data, system security and cyber risks are fourth, followed by business premises security breaches.

The leading emerging risk is cyber, with 23% of those surveyed saying they do not have a procedure in place to deal with the threat.

Increasing corporate governance requirements and talent attraction and retention rank second and third, with more than 40% of respondents lacking plans.

Earnings volatility and business continuity round out the emerging top five.

Organisations say they are prepared to deal with natural disaster risks, but Mr Pearson says the impact if suppliers are hit is an often-overlooked area.

“Many organisations focus on what happens if their location is affected by an event, but forget to consider what they would do if their supply chain is impacted.”

About 55% of Marsh clients say they are reviewing risk more than they were two years ago.

“Our ever-changing and sometimes volatile environment is likely to be pushing the topic higher up the corporate agenda,” Mr Pearson said.

The survey gathered responses from 132 executives across New Zealand, covering a range of industries and public and private organisations.