Health and safety ‘surprise’ top risk for global D&Os, finds WTW survey

Health and safety is the “surprising” top risk for 84% of global directors, officers and risk managers, according to a survey by WTW and Clyde & Co, rising four places to knock cyberattack from the number one spot for the first time in three years. In a poll of 900 directors from 52 countries for its 2024 Global Directors’ and Officers’ Survey, WTW and Clyde said health and safety risk rose from fifth place in last year’s survey and has averaged a top threat for just 45% of directors over the past three years. “We found this to be a genuinely surprising change,” the report said, although it could in part be explained by directors becoming more confident in managing cyber and data loss risks, which have dominated the top two spots over the past few years. Jeremy Wall, head of global FINEX at WTW, said: “It was a surprise to see health & 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.” Wall added that organisations should prioritise evolving their risk management practices to address emerging threats around health and safety. Health and safety was the number one risk for all regions except Great Britain, where it polled in second place behind data loss. Almost half of the 900 respondents to the survey were in Europe or Great Britain. Cyberattack was knocked from the top spot into second place, having topped the ranking for the past three years, with 79% of global directors naming it as their leading risk. Data loss dropped from second place into third in the 2024 poll, and the threat of an organisation being a victim of crime dropped out of the top seven for the first time since 2019. Systems & controls and breach of sanctions were new entrants to the poll, which WTW said reflected geopolitical tensions and complex corporate governance. Climate change, however, sat outside the top ranking globally, although it was a top seven risk for regions including Asia, Australasia and the Middle East. James Cooper, partner and global chair of the insurance practice at Clyde & Co, said directors are facing a dynamic and complex risk landscape and need to ensure they are protected. “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. By leveraging the insights and recommendations from this report, organisations can better navigate these challenges, enhancing their resilience and strategic response to risks.” Although D&O insurance rates have softened, 32% of respondents said they either have a captive involved in their D&O programme or that they are considering involving their captive, while a further 25% said they are considering other alternatives to the traditional commercial insurance market. The survey also revealed that 22%-29% of respondents don’t know how much D&O insurance is being purchased for them. Top seven risks for directors and officers 2024 (2023 in brackets) Health and safety (5) Cyberattack (1) Data loss (2) Regulatory breach (4) Systems & controls (-) Bribery and corruption (6) Breach of sanctions (-) Global Directors’ and Officers’ Survey, WTW and Clyde & Co

Health and safety ‘surprise’ top risk for global D&Os, finds WTW survey

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