Unveiling the Cyber Recovery Reality Gap in New Zealand

New Zealand businesses are facing a stark disconnect between their expectations and the harsh realities of cyberattack recovery. A recent Commvault study surveying 408 business leaders across Australia and New Zealand highlights this issue vividly: 80% anticipate full system restoration within five days of a major incident, with nearly a quarter believing it could happen in just 24 hours. However, IT professionals from the same organisations paint a different picture, estimating a minimum of four weeks for operational recovery, and in some cases up to 45 days on average. This mismatch underscores a critical vulnerability in Kiwi cyber resilience, where overconfidence could lead to devastating operational halts, financial losses, and eroded customer trust.

The study, titled State of Data Resilience ANZ 2026, reveals that while 70% of organisations claim to have incident response plans, only 30% regularly test their mission-critical systems. Among those hit by attacks, 74% suffered data exfiltration, yet just 32% managed to recover 100% of their data. These figures align with broader trends reported by New Zealand's National Cyber Security Centre (NCSC), which logged $26.9 million in direct financial losses from cyber incidents in 2024/25, despite a slight dip in total reports.

Key Findings from Recent Cyber Security Reports

Diving deeper into local research, Kordia's 2026 New Zealand Business Cyber Security Report surveyed 247 large organisations and found 44% had been successfully attacked in the past year—a decrease from 59% previously—but with rising sophistication. Notably, 61% experienced serious business disruption, 20% faced extortion attempts (up from 14%), and 42% admitted to paying ransoms, with 32% open to doing so again. A third estimated full resolution would take over two months, and another third doubted complete recovery from a major attack. Datacom's 2026 Cybersecurity Index, based on over 700 security leaders, echoes this: only 30% of NZ firms have formal business continuity plans, despite 40% expecting quick bounces back.

These reports collectively expose the misconception that cyberattacks are rare or recoverable swiftly. Phishing attacks, amplified by AI, have surged 1,200% since 2022, with over 80% of emails now containing AI-generated content. AI-first businesses face nearly seven months recovery—100 days longer than others—highlighting how emerging tech exacerbates the gap.

Why Do Expectations Differ So Widely?

The root of this misconception lies in several factors. First, boardrooms often view cyber risks as an IT issue, not a strategic one. Patrick Sharp, General Manager of Aura Information Security (Kordia-owned), notes: “Organisations need response strategies practised long before incidents occur, including assigned roles, decision-making thresholds, and communication plans.” Untested plans fail under pressure, turning hours-long expectations into weeks of chaos.

Second, staffing shortages plague NZ: Cisco's index shows 85% report skilled personnel gaps, with 42% having over 10 vacancies. Only 2% achieve mature readiness, below global averages. Burnout affects 61% of security teams, impairing preparedness. Finally, overreliance on insurance masks true costs—extortion payments fuel attackers, creating a vicious cycle.

Real-World Case Studies: Lessons from Kiwi Cyber Incidents

New Zealand has seen its share of prolonged recoveries. In 2023, Auckland University isolated servers after a cyberattack but continued operations—yet full remediation took weeks. Health sector breaches, like Waikato DHB's, disrupted services for days, underscoring vulnerabilities in critical infrastructure. More recently, NCSC data shows Q3 2025 losses spiked 118% to $12.4 million, with supply chain attacks hitting large firms hardest.

A manufacturing firm cited in Datacom research halted production for five weeks post-ransomware, with full recovery nearing five months. Retailers like JPG faced IT outages affecting customer channels. These cases illustrate that while containment might take days, data integrity verification, system rebuilds, and compliance checks extend timelines exponentially.

Economic and Operational Impacts on Kiwi Businesses

The fallout is profound. Kordia reports 20% supply chain interruptions from third-party breaches. NCSC tallies $26.9 million direct losses annually, but indirect costs—lost revenue, fines, reputational damage—multiply this. SMEs, comprising 43% of targets per NCSC, risk closure: 60% shut within six months of breaches.

• Financial extortion: 19% of large firms hit, up sharply.
• Operational downtime: 61% serious disruption.
• Data loss: Only 32% full recovery post-exfiltration.

In a small economy like NZ's, these ripple through sectors, from retail to manufacturing, amplifying national risks.

Expert Perspectives: Bridging the Knowledge Divide

Mark Hile of Datacom emphasises: “The priority now is engineered resilience—from containment to rapid recovery.” Collin Penman adds: “A plan untested isn’t a plan.” The Institute of Directors warns 19% of businesses undervalue cyber, with half lacking board assurance. Government’s 2026-2030 Cyber Security Strategy mandates resilience like health/safety, with director fines up to $500k.

For details on the Commvault State of Data Resilience ANZ 2026 report, see how ANZ leaders compare.

Building Effective Cyber Resilience Strategies

To counter misconceptions, businesses must prioritise:

• Regular Testing: Simulate attacks quarterly; only 30% do now.
• Immutable Backups: Air-gapped, tested restores prevent ransom payments.
• Board Involvement: Annual audits, clear RTO/RPO metrics.
• AI Defences: Train on deepfakes; segment networks.

Adopt a 'minimum viable company' approach: Isolate critical ops for quick recovery.

The Role of AI and Emerging Threats

AI supercharges attacks: 43% cite employee data exposure via genAI as top risk. Phishing up dramatically. Yet AI aids defence—automated detection cuts response times. Kordia notes improper AI use now top-3 challenge for 24% of firms.

Check Kordia's 2026 NZ Business Cyber Security Report for threat landscapes.

Government Initiatives and Regulatory Shifts

NZ's Cyber Security Strategy 2026-2030 elevates resilience, with critical infrastructure mandates. NCSC pushes awareness; penalties deter negligence. Businesses must align or face audits/liability.

Actionable Insights for Kiwi Business Leaders

1. Conduct gap analysis: Compare board vs IT recovery estimates.
2. Invest in cyber insurance with recovery stipends.
3. Train staff: 71% think informed, but gaps persist.
4. Partner experts: MSSPs for 24/7 monitoring.
5. Measure: Define Recovery Time Objective (RTO)—time to restore ops—and Recovery Point Objective (RPO)—data loss tolerance.

Start with a tabletop exercise simulating ransomware.

Future Outlook: Towards Resilient Kiwi Enterprises

With attacks evolving, NZ businesses must shed illusions. By 2030, strategy predicts halved incidents via collective action. Early adopters of resilience will thrive; laggards risk obsolescence. Proactive steps today ensure tomorrow's security.

Photo by David Pupăză on Unsplash