COVID exacerbating concerns around cyber and data loss: Willis Towers Watson

Cyber-attacks and data loss are the top risks facing directors and officers (D&O), according to a global survey from Willis Towers Watson and Clyde & Co, the global law firm.

The survey, which gathered responses from the UK, Europe, Asia Pacific and the US, revealed the extent to which the COVID-19 pandemic and the forced change in working practices has heightened concerns around cyber.

It showed that more than half (56 percent) of respondents felt cyber-attacks represent a very significant or extremely significant risk to their business, with 49 percent saying the same about data loss and 46 percent highlighting regulatory risk.

More than four out of ten (41 percent) cited health and safety risk, with employment claims risk (38 percent) making up the top five risks this year.

The survey revealed that business moving to new procedures and systems overnight due to the COVID-19 pandemic has increased vulnerability to data loss, with remote working creating a fertile ground for cyber criminals.

Regulatory and litigation risk remains a key challenge, especially in the context of board diversity becoming mandatory for many businesses.

Interestingly, insolvency risk was knocked down the list of concerns in 2021, despite speculation of a potential wave of insolvencies.

Jeremy Wall, head of global finex at Willis Towers Watson, said: “We are grateful for the contributions from Clyde and Co which have delivered a valuable new perspective to our interpretation of the survey results and have enabled us to deliver a great resource for directors and risk managers.”

James Cooper, chair of the global insurance practice group and head of the financial institutions and D&O team at Clyde & Co, added, “This important survey highlights the changing risk environment facing key businesses today.”

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