Economic and cyber risks are causing increasing concern for directors and officers worldwide, according to a Directors Liability 2023 survey from WTW and law firm Clyde & Co.

The survey identifies key risks for directors across the UK, Europe, Asia, Australasia, Latin America and North America, with responses from 40 countries.

Economic risk was considered the top risk for businesses by 63% of global directors, closely followed by cyber risk on 62%. Covid-19 and Brexit risks, while still in the top five, continue to decrease in importance.

Climate change made it into the top five risks for directors in only two regions – Great Britain, where it is the number one risk, and Australasia, where it ranked number four.

“Cyber risks remain the primary concern for directors in the Australasia region, an unsurprising perspective that is no doubt driven by last year’s major data breaches including Optus, Medibank and MyDeal,” WTW Australasian Head of FINEX Jill Stewart said.

“Meanwhile, the risk ranking of health and safety prosecutions has increased locally, reflective of the many WHS legislative changes that have occurred across Australia in particular, and our heightened understanding of the need to effectively manage psychosocial hazards in the workplace.

“However, despite investors and financial markets increasingly demanding a compelling ESG plan and demonstrated path to net-zero, Australasia is one of only two global regions where climate change is considered a major risk by directors.

“Australasia is also the only region where the importance of insurance cover for ESG-related risks was highlighted. This level of awareness and concern is likely intensified by our region’s exposure to natural disasters, whether that be flood, fire, cyclone or earthquake.”

Click here to see the full survey.