WTW have published their 2022 Directors Liability Survey Report in partnership with Clyde & Co LLP.
Last year, WTW produced their first international survey report. This year, the scope has been expanded with responses from directors and risk managers based in more than 40 countries around the world. As a result, you can now compare results from G.B., the U.S., Latin America, Europe, Asia and Australia.
The survey has also been enhanced to include:
- More questions regarding climate change risk for directors focusing down on the different aspects of physical risk, transition risk and risks arising from climate change reporting requirements.
- A further cyber-related risk: cyber extortion. This risk provoked a strong response from respondents, immediately becoming a Top 5 risk across all regions (see the article [Cyber Extortion - ransomware and payment of ransoms] on page 36).
- Questions exploring to what extent the respondents’ businesses have implemented captive insurance vehicles or other alternatives to the commercial D&O insurance markets.
Top 5 risks identified in 2022
- Cyber Attack (Top risk in 2021)
- Data Loss (second in 2021)
- Cyber Extortion (New risk this year)
- Regulatory Risk (including threat of fines and penalties)
- Health & Safety / Environmental Prosecutions
It is, perhaps, no surprise respondents identified their top two risks to directors to be Cyber Attacks and Data Loss, those having topped the list for the last three years. However, making a new entry is Cyber Extortion. The past year saw attacks evolve from attackers simply encrypting data to encryption and exfiltration, also known as double extortion and, further, into triple extortion, where the attackers seek to extract money from third parties related to the initial breach, such as customers.
To obtain a copy of the report, which includes more detailed analysis and information, click on the ‘Download’ button above.