Aussie Directors Rank Climate Change as Top Risk
Economic and cyber risks are causing growing apprehension among directors and officers worldwide, as revealed by a Directors Liability 2023 survey conducted by WTW and law firm Clyde & Co.
The survey, encompassing responses from 40 countries across the UK, Europe, Asia, Australasia, Latin America, and North America, identifies the key risks perceived by directors.
Economic risk was ranked as the foremost concern for businesses by 63% of global directors, with cyber risk following closely at 62%. Although COVID-19 and Brexit risks remain in the top five, their significance continues to decline.
Climate change emerged as one of the top five risks for directors in only two regions: Great Britain, where it ranked as the number one risk, and Australasia, where it came in fourth.
In the Australasia region, cyber risks remained the primary concern for directors, given the notable data breaches that occurred last year, including those at Optus, Medibank, and MyDeal, as noted by WTW Australasian Head of FINEX Jill Stewart.
Additionally, the ranking of health and safety prosecutions has risen locally, reflecting the numerous changes in WHS legislation across Australia and the heightened awareness of managing psychosocial hazards in the workplace.
However, despite the increasing demand from investors and financial markets for compelling ESG plans and net-zero targets, climate change is considered a major risk by directors only in Australasia and one other global region.
Notably, Australasia is the sole region where the significance of insurance coverage for ESG-related risks was highlighted, likely influenced by the region's exposure to natural disasters such as floods, fires, cyclones, and earthquakes, according to Jill Stewart.
To access the complete survey, please click here.
Source: Insurance News