Risk Spotlight: H&S beats cyber as top priority for D&Os

Health and safety has climbed to the top of WTW’s Global Directors' and Officers' Survey, displacing cyber as the risk the C-suite considers to be the most crucial to plan for.

Jeremy Wall, managing director and global head of FINEX at WTW, attributed this shift to the changes in work habits brought about by the pandemic.

“The number one risk facing directors and officers this year, according to our survey, is actually health and safety,” he said.

“This was surprising to us initially, but when you dig deeper, it makes sense given the ongoing health and safety issues stemming from the pandemic, especially those related to remote work and mental health,” Wall stated.

Though health and safety has now overtaken cyber as the leading risk that directors and officers believe requires the most attention, Wall emphasised that this shift does not indicate growing complacency around cyber risks. Instead, he saw it as reflecting a greater confidence in how companies are managing these risks.

“I don't think boards are becoming more complacent about cyber risk at all. I believe boards are now more comfortable with the cyber risk and the cyber posture that their companies have.

“It’s simply a matter of having a deeper understanding of the cyber exposures we face daily,” Wall explained.

Highlighting the threat that cyber risks pose to boards, Wall stressed the importance of ensuring that a D&O policy includes cyber coverage, which is generally the case in the London market.

“A good D&O policy should cover cyber, so we don't see the need for affirmative cover. That's been addressed previously in the London marketplace. Claims and investigations against directors arising out of the cyber incident are covered.

“There are certain instances in different jurisdictions where we need to make sure that is not excluded as much,” noted wall.

Wall also emphasised that cyber risk is a global threat that does not respect international boundaries. According to Wall, the global nature of these threats highlights the importance of the FINEX team's scope and scale in managing the risk effectively.

“We provide our analytics, our data, and our risk management to our clients wherever they are, regardless of jurisdiction. As we have a team of 200 experts around the world, we can put the right person in front of that client. So, that's how we deal with cyber risks,” said Wall.

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