Proactive legal risk management is essential for every New Zealand executive navigating today’s increasingly complex business landscape, and our experts have identified five key areas to watch in 2026.
From contractual pitfalls to cybersecurity threats, understanding these risks is essential for protecting your business and reputation – and failing to do so can have far-reaching consequences.
To ensure your business is protected heading into 2026, we recommend reaching out to our experienced commercial and litigation specialists who can provide tailored, practical advice to help you identify, manage, and mitigate these risks before they become costly problems.
1. Contractual risk
Why it matters
Contracts form the backbone of every commercial relationship. Poorly drafted or ambiguous agreements are one of the biggest causes of disputes.
Clear terms and robust dispute resolution clauses are essential to avoid costly court cases.
Example
Missing dispute resolution clauses or unclear performance obligations can lead to litigation when circumstances change. For instance, a construction contract without a clear variation process can result in millions of dollars in claims.
Practical tips:
- Conduct annual reviews of all major contracts to ensure they remain fit for purpose.
- Include clear dispute resolution mechanisms – consider mediation or arbitration as alternatives to court.
- Document all variations in writing and avoid informal agreements via email or phone.
- Train operational teams on contract compliance to prevent inadvertent breaches.
2. Regulatory & compliance risk
Why it matters
Compliance obligations are expanding under New Zealand law, including health and safety, environmental, and financial regulations.
A single misstep can trigger investigations, penalties, and reputational damage.
Example
Failing to comply with health and safety requirements can lead to WorkSafe investigations, fines, and even criminal liability for directors.
Practical tips:
- Implement regular compliance audits and maintain a compliance calendar for key obligations.
- Provide ongoing training for staff and directors on regulatory changes.
- Engage external advisors for complex areas such as environmental law or financial services regulation.
- Establish a whistleblower policy to identify and address issues early.
3. Governance & director liability
Why it matters
Directors have personal duties under the Companies Act. Breaches can lead to personal liability and reputational harm.
In times of financial stress, directors must be vigilant to avoid claims for breach of duty, including for reckless trading.
Example
Trading while insolvent or other breaches of director duties can result in claims against directors, including personal liability for company debts and voidable transaction (claw-back) claims following liquidation.
Practical tips:
- Schedule regular board meetings focused on financial health and risk management.
- Document all decisions thoroughly, including rationale and risk considerations.
- Seek independent legal advice before approving high-risk transactions.
- Ensure directors understand their duties under the Companies Act.
4. Employment & workplace risk
Why it matters
Employment relationship issues, personal grievances, and potential health and safety prosecutions can escalate quickly, be incredibly expensive and damage morale.
It is not uncommon for poor processes – including issues such as performance and restructuring – to lead to personal grievances and ultimately litigation if the matter is not settled promptly.
Example
A poorly handled restructuring process that leads to a redundancy can result in significant compensation claims and reputational harm.
Practical tips:
- Maintain clear HR policies and ensure they are consistently applied.
- Train managers on best-practice when managing employee issues such as sick leave, performance and potential misconduct.
- Engage legal advisors early when a process may lead to the termination of an employee’s employment.
- Foster a positive workplace culture to reduce the likelihood of disputes.
5. Cybersecurity & data privacy risk
Why it matters
Data breaches and cyberattacks can result in regulatory action and civil claims under the Privacy Act.
With increasing reliance on digital platforms, the risk of cyber incidents is higher than ever.
Example
Failing to protect customer data can lead to enforcement by the Privacy Commissioner and significant reputational harm.
Practical Tips:
- Invest in robust cybersecurity measures, including firewalls and encryption.
- Conduct regular penetration testing and vulnerability assessments.
- Train staff on phishing and social engineering risks.
- Develop and test a data breach response plan to ensure rapid containment.
Please contact Mike King or the Lane Neave team today to arrange a confidential discussion about your legal risk profile and how we can support your business strategy.
