WTW releases D&O Top Risks Survey

 Cyberattack is the top risk cited by company directors, followed by data loss and cyber extortion, says a global survey of 437 directors issued by Willis Towers Watson PLC on Thursday.

The survey report, which was issued with Clyde & Co., said the next biggest risks cited by directors was regulatory risk, including the threat of fines and penalties, and the risk of health and safety/environmental prosecutions safety legislation.

The top risks reported in the 2021 survey were cyberattack, followed by data loss, regulatory risk, risk of safety legislation and risk of employment claims.

Among other survey results, despite the attention paid to climate risk, it remains outside the top five risks in any region.

However, the survey report warns that despite this, climate and environmental social and governance risks “will continue to increase for directors and officers as governments, regulators and stakeholders seek to bring about the rapid changes required to meet international climate and ESG commitments in the run up to 2030 and beyond.”

The survey report also said that because of the steep increase in insurance rates over the past two to three years, there has been a “lot of discussion” about potential alternatives to purchasing D&O insurance from the commercial insurance market, including captives.

Source: WTW, Directors’ Liability Survey 2022 - WTW (wtwco.com)