Regulatory breaches emerged as the top risk among Asian boards, according to a survey by Willis, a business by WTW.
In the latest Directors and Officers Liability Insurance Survey, it was found that 75% of directors and officers in Asia view the risk of
regulatory breaches as very important or extremely important to their organisations, which is in stark contrast to global trends.
Risk of data loss and cyber-attacks remains among the top three concerns in Asia, but health and safety risks have dropped three places from being the top concern in 2024 to fourth on the list this year.
In general, Willis says there is a strong alignment between perceived material risks and board expertise and priorities, but there is an exception when it comes to cybersecurity and data privacy, with many boards indicating more time is needed.
Seventy-two percent of those polled in Asia see data loss and cyber-attacks, including extortion, as very important or extremely important, while 56% of respondents consider artificial intelligence to be very or extremely important.
Willis notes that this perception may change in the future as new use cases and regulations develop.
Additionally, the survey revealed that civil litigation and third-party claims has become among the top seven concerns for the first time since 2018, with 65% of Asia-based directors and officers surveyed considering these significant risks to them.
