What are the top concerns among directors and officers this year?
Eight in 10 directors and officers across the world cited workplace health and safety as a major risk for their organisations this year, keeping it at the top of their list of concerns for the second year in a row.
The latest Global Directors' and Officers Survey Report from WTW and Clyde & Co found 80% of employers saying health and safety is a very or extremely important concern.
"Health and safety remains the number one risk globally, showing that last year's result wasn't an anomaly," said Angus Duncan, WTW Global D&O Coverage Specialist, in the report.
Source: Directors and Officers Liability Insurance Survey
According to the findings, physical health and safety in the workplace is the top concern of employers worldwide (43%). This is followed by:
Four regions across the world ranked health and safety as their top concern, namely Europe, Latin America, Pacific, and Africa.
Source: Directors and Officers Liability Insurance Survey
The exact reason why health and safety remain on top is "not precisely clear," according to WTW. However, it noted that high-profile cases that led to significant criminal and regulatory actions have contributed to this.
"In Australia, industrial manslaughter has now been introduced in all states and territories, and a number of workplace legislative reforms came into effect in 2024," it noted.
The pandemic also contributed to the greater awareness of the health of employees, the report stressed.
"There is also a growing willingness by boards to accept that mental health is as important as physical health, and a recognition that companies that consider and look after their employees' wellbeing lead to greater productivity and improved financial performance," it added.
Meanwhile, rounding out the top three concerns among global employers are data loss and cyber-attacks, both of which are cited by 77% of directors and officers surveyed.
"It is no surprise that these risks remain near the top, given the significant costs that can flow from data loss, which is often (but not always) linked to a cyber event (for example, leaving confidential information on public transport, improper disposal of sensitive info (not shredding), physical theft etc.)," WTW said in a separate article.
In fact, governments across the world have been taking steps to protect organisations from such risks.
In the United Kingdom, the Data (Use and Access) Bill is already in Parliament, which addresses the use, privacy, and access of data and ensures that they are handled responsibly and securely.
The UK also introduced a new Cyber Security and Resilience Bill, which seeks to strengthen the country's cyber defences and ensure that essential digital services are better protected.
In Australia, the government has also introduced proposed reforms to the country's privacy laws, which include an employer-criticised statutory tort for serious invasion of privacy.
Another entry that WTW highlighted in this year's report is civil litigation, which entered the top seven list of concerns for the first time since it was first tracked in 2018.
Nearly two in three employers globally (63%) considered civil litigation a very or extremely important concern, putting it in the sixth spot on this year's list.
According to WTW, some of the factors that contributed to the rise of litigation concerns among directors and officers are:
Patrick Beckett, Head of Executive Risks, Pacific at Willis, said their findings this year demonstrate the weight of challenges faced by directors and officers today.
"Increasing legislative reform, regulatory and shareholder scrutiny, and individual accountability are driving companies and their leadership to prioritise holding the best possible protection, at an appropriate cost," Beckett said in a statement.
"By integrating expertise, insight, and analytics into D&O insurance programmes, businesses can move forward with confidence."
