23% of global executives stated that employer risk was the biggest threat they face, up from 22% in 2023.
This was the biggest risk according to research from Beazley in its latest Risk & Resilience report.
In addition, 24% feel unprepared to tackle this risk.
Ambition to increase diversity and inclusion in global firms is highlighted by the report, with 26% of the executives surveyed saying that they plan to review hiring and retention policies to boost diversity and inclusion in the workplace.
Furthermore, 22% were concerned about ESG regulation and the failure to comply with new rules. 67% believed that ESG regulation is too complex for their business to deal with, and 70% want more guidance from regulators on ESG regulations.
Bethany Greenwood, CEO of Beazley Furlonge and global head of specialty risks, Beazley said: “While macroeconomic conditions appear to be stabilising, D&O risks are still front of mind for global business leaders. In the event of a company filing for bankruptcy, D&O litigation can quickly follow for executives. Amid persistent inflation and the ongoing threat of recession, this has been a key threat in recent years.
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By GlobalData“At the same time, businesses and their executives are feeling the heat, with D&O liability extending beyond the realms of financial performance, with litigation now being brought against executives following cyberattacks, supply chain disruption and employment-related issues. Failure to comply with ESG regulation has proven another key flashpoint for D&O risk. Our latest report highlights how the threat landscape has fragmented and become increasingly multifaceted with executives left scrambling to protect themselves. Understanding the risks and enhancing resilience has never been more important.”