The COVID-19 pandemic and changes in working practices have heightened concerns around cyber attacks and data loss for directors and officers, according to a global survey from Willis Towers Watson and Clyde & Co.
The 2021 Directors & Officers Survey showed that some 56 per cent of survey respondents cited cyber attacks as a key risk for directors across the globe. These respondents noted that the risk was either ‘very significant’ or ‘extremely significant’.
Data loss (49 per cent), regulatory risk (46 per cent), health and safety risk (41 per cent) and the risk of employment claims (38 per cent) also made up the top five risks this year.
The report explains that increased vulnerability to data loss is a result of businesses moving to new procedures and systems overnight due to the COVID-19 pandemic with remote working creating a fertile ground for cyber criminals.
Meanwhile, regulatory and litigation risk continues to challenge organisations with board diversity now becoming mandatory to most businesses.
According to the survey, expected concern about insolvency featured considerably lower than in the last survey despite speculation of a potential wave of insolvencies.
Jeremy Wall, head of global Finex, Willis Towers Watson, says: “We are delighted to be launching the 2021 Directors & Officers survey which gathers the views of directors and officers internationally.”
“We are grateful for the contributions from Clyde & Co which have delivered a valuable new perspective to our interpretation of the survey results and have enabled us to deliver a great resource for directors and risk managers,” Wall comments.
James Cooper, chair of the global insurance practice group and head of the financial institutions and D&O team at Clyde & Co, adds: “This important survey highlights the changing risk environment facing key businesses today. We are pleased to collaborate with Willis Towers Watson on this survey report which highlights continued concern around cyber attacks and data loss as well as the impact of regulatory change on business.”
The survey covers the UK, Europe, Asia Pacific and the US identifies the key risks for directors across the globe.
