According to a recent global survey, cyber-attacks and data loss are the top two risks facing Directors and Officers, following pandemic-related changes in the workplace.
According to a recent global survey, cyber-attacks and data loss are the top two risks facing Directors and Officers, following pandemic-related changes in the workplace.
The top five risks identified by Directors and Officers, were identified as the below:
– Cyber-attacks (56%)
– Data loss (49%)
– Regulatory risk, including fines and penalties (46%)
– Health & safety prosecutions (41%)
– Risk of employment claims (38%)
Cyber-attacks and data loss have featured in the top three overall since 2016, largely down to the introduction of GDPR that became effective in 2018, resulting in significant fines. As many of us have had to adapt our lifestyle changes to working from home during the pandemic, it is not surprising that this is one of the biggest threats facing both Directors and Officers.
Unfortunately, the COVID-19 pandemic has provided a fertile ground for many cyber criminals, exploiting a large amount of company’s weaknesses. This has caused many organisations to have to move to new procedures and systems overnight, often with their workforce having to work remotely.
All the risks exposed to both directors and officers, have the potential to trigger larger widescale investigations, which are increasingly being brought by more aggressive regulators.
Employment claims was also a top risk facing organisations, with many pandemic-triggered furloughs and layoffs, as well as returning to work and vaccination policies, all exacerbating concerns.
Other key findings in the report included diversity, climate change and bankruptcy, all proving to be issues that could potentially threaten directors and officers if not addressed.
It is also important that Directors are aware of their financial reporting and tax liabilities, as mistakes on either of these could land you in serious trouble. Tax crimes have always been problematic for the HMRC convicting hundreds over the past years, many of whom were company Directors.
While many Directors and Officers would never purposefully mess with their taxes, mistakes and oversights can also be prosecuted due to negligence, with Companies House convicting hundreds each year.
The risks facing CEOs and top members of organisations, means that insurance for these is vital helping with any mistakes, defence costs and allegations. For more information or to speak to our member of team, get in touch today!
