New Report Shows Most Common Risks to Directors & Officers

Must Read

A new report released this week has revealed the top risks facing directors and officers of businesses today.

A recent survey by WTW and global law firm Clyde & Co indicates that directors and officers are becoming more concerned about economic and cyber risks related to ransomware and data loss.

The survey gathered responses from 40 countries across North America, Latin America, the UK, Europe, Asia, and Australasia to identify critical risks for directors in those regions.

According to the survey, 63% of directors consider economic risk the biggest threat to businesses, closely followed by cyber risk at 62%. Geopolitical risk moved to fourth place from its previous position of sixth place.

WTW reported that this year’s results align with the 2022 survey, showing that cyber-attacks, data loss, and data extortion remain significant concerns for directors.

The survey has categorised economic risks into three categories for the first time: inflation, recession, and the job market. According to most global directors, inflation is the most significant economic risk at 69%, with recession not far behind at 67%.

Additional discoveries indicate that COVID-19 and Brexit risks are still among the top five, but their significance is declining. Moreover, climate change has become a top five concern for directors in Great Britain, where it is regarded as the number-one risk and Australasia, ranked fourth. Also, geopolitical risks are a significant concern for businesses in Europe, Asia, and Latin America.

“Directors are becoming increasingly concerned about geopolitical risk due to the unpredictable nature of the current business environment,” the head of global financial and executive risks (FINEX) at WTW, Jeremy Wall, said.

“They want to ensure that their businesses remain resilient against these risks, and the survey results indicate that they are taking steps to do so.”

Wall said that directors must understand their exposures to mitigate risk and protect their businesses effectively. 

He concluded, “Effective risk management should start with a comprehensive review of all potential risks, including those identified in this survey.”

With the world becoming increasingly complex, business leaders must stay abreast of the current risks to protect their organisations from unforeseen threats.

- Advertisement -spot_img
Latest News
- Advertisement -spot_img

More Articles Like This

- Advertisement -spot_img