WTW have published their 2024 Directors’ & Officers’ Survey Report, in partnership with Clyde & Co LLP. The annual Survey explores the full landscape of risks facing directors and officers, especially as they continue to be the subject of ever-increasing accountability. The report provides a global view of their perceptions of risk with over 50 countries covered.
The Global Directors’ and Officers’ Survey underscores the dynamic and complex nature of the risk landscape facing directors and officers today. The primary objective of the survey is to identify and analyse the top risks perceived by directors and officers worldwide, tracking shifts in risk priorities and uncovering emerging threats. By doing so, it is aimed to equip organisations with the knowledge to enhance their risk management strategies and insurance practices effectively.
Key findings
- Top risks: A significant shift has been observed with health and safety emerging as the top risks for directors.
- Emerging risks: New entrants in the top risks include systems and controls and breach of sanctions, reflecting heightened geopolitical tensions and the increasing complexity of corporate governance.
- Regional insights: For the first time, our survey includes detailed insights into Africa, the Middle East, and India, offering a more nuanced understanding of regional risk dynamics.
- Climate change: While not in the top 7 risks globally, the importance of climate change remains high in some regions such as Asia, Australasia and the Middle East, where it has been identified as a top 7 risk.
- Alternative risk transfer: A notable portion of respondents are exploring or using captives and other mechanisms, indicating a strategic approach to managing D&O risk despite the softer market conditions.
Recommendations
- Enhanced risk management: Organisations should prioritise evolving their risk management practices addressing the emerging threats, particularly around health and safety.
- Insurance education: There is a pressing need for better education on D&O insurance and indemnification practices to ensure directors and officers are comprehensively protected.
- Holistic insurance coverage: Companies must consider a more holistic approach to their insurance coverage, aligning it with the changing risk landscape to secure comprehensive protection.
To download the full report, click on the link. The link takes you to both the survey report and to a number of accompanying articles that provide a deeper dive into the findings.