Health and safety risks lead a list of concerns for corporate directors and executives globally, who say these issues, if not well managed, could be detrimental for their organisations this year.
The report, Global Directors’ and Officers’ Survey Report, from WTW, a multinational insurance services company, found that boards across the globe face new challenges this year, with health and safety as a central concern for the first time. The report is based on over 900 responses from 52 countries.
“While health and safety has always been in the top seven since 2018, it is remarkable to see it become the number one,” the report said. “Other new entrants into the top seven for the first time are systems and controls and breach of sanctions.”
The impact of mismanaged risks last year has prompted reprioritisation in 2024, WTW said, and organisations are pressed to ensure robustness to avoid the financial implications of poor risk control.
“It is unclear what the precise reason is for this rise in concern, but, certainly in the UK, 2023 saw highly publicised fines levied on major corporations,” WTW said, “alongside a noticeable uptick in enforcement notices issued by the Health and Safety Executive (HSE) and reports of the HSE’s impressive 94% conviction rate of individuals.”
While cybercrime is taking a backseat for many directors as organisations become more comfortable managing these threats, it remains a pressing concern for the finance and insurance industry, the report found.
Eighty-six per cent of directors and executives surveyed in the finance and insurance industry say cyberattacks (including cyber extortion) pose the most significant risks to their organisations this year.
As the landscape evolves, respondents said risk managers (65%), lawyers (59%), other external consultants (43%), insurance brokers (43%), accountants (43%), regulators (40%), and professional organisations such as the Non-Executive Directors’ Association (31%) are key players in monitoring this emerging risk environment.
A publication from WTW on the report advises organisations to prioritise evolving their risk management practices to address the emerging threats, particularly around health and safety.
— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.
