Directors identify health and safety as emerging top risks: Survey

Climate change remains high on the risk agenda in certain regions, such as Asia.

Health and safety has emerged as the top risk for directors and officers worldwide, with 84% of respondents ranking it as very or extremely important, followed closely by cyber-attack risks at 79%, according to the 2024 Global Directors’ and Officers’ Survey Report by WTW and Clyde & Co,

Data loss has dropped in rank globally, although it remains a top perceived risk in Asia and Australasia. Emerging risks such as systems and controls and breaches of sanctions reflect heightened geopolitical tensions and the increasing complexity of corporate governance.

Climate change remains high on the risk agenda in certain regions, such as Asia, Australasia, and the Middle East. Many respondents are exploring alternative risk transfer mechanisms like captives, indicating a strategic approach to managing D&O risk.

Simon Weaver, head of Asia Pacific and head of corporate risk & broking, Asia Pacific, emphasized the shifting risk landscape in the region, with health and safety taking precedence over cyber-attacks. 

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“The responsibilities incumbent upon directors and officers in APAC continue to evolve and become more nuanced, with aspects, such as employee safety, ESG-related obligations and cybersecurity-related pressures to be cognisant of.  All set with a backdrop of ever-increasing competition and pressures to meet financial targets,” Weaver said in a press release.

James Cooper, partner and global chair of the insurance practice at Clyde & Co, stressed the need for better education on D&O insurance and indemnification practices to ensure comprehensive protection for directors and officers. 

“By leveraging the insights and recommendations from this report, organisations can better navigate these challenges, enhancing their resilience and strategic response to risks.” Cooper added.

The report covers various regions including the UK, Europe, Asia, Australasia, Latin America, North America, Africa, and the Middle East, and highlights the evolving risk landscape for directors and officers.