Sydney, Australia – A recent report from cybersecurity and observability firm Splunk revealed that unplanned downtime due to cyber threats or system outages has cost businesses in Australia and New Zealand potential national costs of up to AU$86b and NZ$75b, respectively.
In the report, it was noted that Australian business leaders from organisations with more than 500 employees experienced an average financial loss of $251,000 per incident as a result of unplanned downtime caused by cybersecurity breaches or system failures. In New Zealand, businesses with 100 or more employees also faced the average loss amounting to $211,000.
Findings also showed that 93% of the respondents from Australia and 89% from New Zealand indicated preparedness for unplanned downtime. However, ANZ businesses are seemingly struggling to keep pace, with cyberattacks in the region growing more frequent and sophisticated.
More specifically, 53% of business leaders in Australia (53% in New Zealand) identified cybersecurity incidents as one of their top concerns in the year ahead. Another 30% of business leaders in Australia (38% in New Zealand) also said employees within their organisation are not trained in cybersecurity preparedness.
Among those surveyed, it was also found that 52% of Australian business leaders working in the public sector shared the same view.
Although the majority stated being well-prepared for unplanned downtime, more than 90% of Australian and 85% of New Zealand respondents have been exposed to a cybersecurity incident or system issue.
This incident underscores widespread gaps across the region, noting 76% of Australian and 75% of New Zealand business leaders reported that these incidents led to some form of outage or unplanned downtime.
Moreover, the report also identified malware, software failures, and phishing attacks as the top three causes of system outages and unplanned downtime in ANZ.
Phishing was further observed as a major concern, with 86% of public sector organisations in Australia and 78% of those in financial services citing it as a primary cause of disruptions.
As unplanned downtime experienced by ANZ businesses proves to be a major disruptor, the report further found its impact from financial costs and productivity loss to reputational damage.
In fact, 62% of business leaders in Australia (and 43% in New Zealand) experienced productivity loss because of downtime caused by cybersecurity incidents. This was followed by financial loss (33% in Australia and 29% in New Zealand) and operational cost in crisis management (27% in Australia, 28% in New Zealand).
The report also noted that cybersecurity-related downtime in Australia averages close to two hours, whereas in New Zealand, the disruption typically lasts just under two hours.
Drawing from this experience, business leaders in ANZ have also reported prolonged recovery times following downtime due to cybersecurity incidents, taking on average 7.4 days to recover.
Meanwhile, a growing focus on digital resilience as a consequence of these risks was also observed, with ANZ businesses prioritising upgrading their technology stack.
Around 59% of business leaders in Australia (44% in New Zealand) plan to upgrade their existing technology/digital tools. Another 57% of business leaders in Australia and 45% in New Zealand are also planning to implement more preparedness training for employees.
On the other hand, 44% of business leaders in Australia and 49% in New Zealand plan to invest in new technologies like generative AI and cloud-based security solutions.
Craig Bates, senior vice president and general manager of Asia Pacific at Splunk, commented, “While ANZ organisations are increasingly prepared for unplanned downtime, there are still pressing issues that exist in ensuring true digital resilience. It is encouraging to see many business leaders investing in new technologies, upgrading digital tools and enhancing employee preparedness – all of which are important strides in the right direction.”
“However, digital resilience goes beyond isolated actions. It requires a proactive, unified approach that not only prioritises cybersecurity but also ensures the integrity of systems across their entire digital footprint,” continued Bates.
He further noted, “In parallel, we’re also seeing the Australian and New Zealand governments taking a proactive role in prioritising digital resilience and strengthening cybersecurity frameworks, positioning themselves as key players in global cybersecurity leadership. This approach is particularly critical in today’s AI-driven era, where leveraging the right technology, combined with accountability and transparency, is key to building strong digital defences across ANZ.”
