Global: Health and safety as top risk facing global directors
Source: Middle East Insurance Review | Apr 2024
The risk of health and safety appears to be the top risk for directors and officers according to the 2024 Global Directors’ and Officers’ Survey Report from WTW and Clyde & Co.
The survey report identifies and analyses the key risks for directors and officers worldwide covering UK, Europe, Asia, Australasia, Latin America, North America, Africa and the Middle East. Overall, health and safety was considered the top risk with 84% of global directors, officers and risk managers ranking it as very or extremely important, closely followed by cyber attack (including cyber extortion) risks on 79%. Data loss has dropped in rank at third place, having ranked second in the previous year. And for the first time since 2019, the threat of an organisation being a victim of crime has dropped out of the top seven risks by global directors.
Other findings include:
- Emerging risks. New entrants in the top risks include systems and controls and breach of sanctions, reflecting heightened geopolitical tensions and the increasing complexity of corporate governance.
- Climate change. While not in the top seven risks globally, the importance of climate change remains high in some regions such as Asia, Australasia and the Middle East, where it has been identified as a top seven risk.
- Alternative risk transfer. A notable portion of respondents are exploring or using captives and other mechanisms, indicating a strategic approach to managing D&O risk despite the softer market conditions.
WTW global FINEX head Jeremy Wall said, “While the last five years have seen cyber and data breaches being a top risk for directors and officers, it was a surprise to see health and safety be considered the top risk. Clearly the pandemic continues to impact the business environment with some of our clients citing the rise in mental health as a considerable concern in their organisations. We strongly recommend that organisations prioritise evolving their risk management practices, addressing the emerging threats, particularly around health and safety.”
Clyde & Co partner and global chair of the insurance practice James Cooper said, “The report underscores the dynamic and complex nature of the risk landscape currently facing directors. What we have seen is that there is a pressing need for better education on D&O insurance and indemnification practices to ensure directors and officers are comprehensively protected.” M