Health and Safety Risks: A Major Concern

A recent study conducted by Willis, a WTW business, in partnership with Clyde & Co, reveals that a significant 80% of directors and officers (D&Os) globally regard health and safety risks as critical to their organizations.

Among these, physical workplace hazards were reported as the leading concern by 43% of participants, while employee mental health and wellbeing issues related to work were noted by 28%.

Emerging Concerns in Litigation and Risk

For the first time since 2018, civil litigation and third-party claims have risen to the top seven concerns, with 63% of D&Os acknowledging these as major risks.

Smaller organizations, with revenues under US$50 million, and mid-sized firms with revenues between US$1 billion and US$5 billion, more frequently reported litigation risks.

In contrast, larger enterprises—with revenues over US$5 billion—identified diversity, equity, and inclusion (DEI), along with bribery and corruption, as top threats, while financial distress and insolvency were less concerning.

Regional Variations in Risk Perception

Interestingly, climate change no longer ranks among the top seven risks in regions such as Asia, North America, and the Middle East. However, DEI has become a significant concern in Great Britain, North America, and Africa.

Rising Social and Cybersecurity Risks

Notably, social risks have surged over the past five years; concerns about human rights breaches within business operations have escalated from 23% in 2021 to 62% in 2025.

Similarly, worries about supplier business practices have increased from 27% to 59% over the same timeframe.

While there is generally a strong alignment between perceived material risks and board expertise, cybersecurity and data privacy are areas that require more focus, according to the survey.

Cyber Threats and Emerging Technologies

An overwhelming 77% of respondents view data loss and cyber-attacks, including extortion, as very important or extremely important risks. Furthermore, AI is a major concern for 51% of respondents and is seen as the area where boards have the least expertise.

Angus Duncan, a global D&O coverage specialist at Willis, comments: “The latest survey results underscore the diverse challenges directors and officers face today, highlighting how complex the landscape has become. Despite increasing concerns over litigation risks, cost remains the dominant factor in D&O insurance purchasing decisions.

“This trend continues even as regulatory scrutiny and shareholder activism increase global liability exposures. By adopting a proactive approach, companies can optimize their D&O coverage while mitigating financial and reputational risks. Our data enables clients to anticipate emerging risks before they become serious exposures.”