The 2022 survey provides a fascinating insight into the liability concerns of Australian directors and officers.The results speak to a market that appears comfortable managing traditional risks, such as employment claims,insolvency and regulatory risk, and more concerned with emerging, less well-understood risks such as cyber attacks, data loss and cyber extortion.
Most interesting is that the significance of shareholder actions/disputes is lower when compared to other regions.
Most interesting is that the significance of shareholder actions/disputes is lower when compared to other regions. This is despite Australia being one of the most litigious countries for securities class actions. Directors'sentiment may reflect their belief that recent government law reform of securities law and litigation funding will have the desired effect.
It may also indicate directors have faced the risk of securities actions in record numbers over the last ten years and have adapted to the environment with robust risk management. We hope this presents an example to directors and officers grappling with the emerging cyber and data loss risks. These risks can be managed with appropriate risk mitigation once correctly understood.
The risk of health and safety and environmental prosecutions was the fourth-highest
The risk of health and safety and environmental prosecutions was the fourth-highest regional risk behind cyber and data loss risks. Australia continues to be a jurisdiction that takes the health and safety of workers seriously, and health and safety regulators are active in ensuring compliance.
The impact of government responses to COVID-19, including vaccine mandates and prolonged lockdowns in Australia, may account for the heightened assessment of this risk. Australian businesses have needed to pay particular attention to ensure the safety of their workers during the pandemic.
The emergence of climate change as an area of significance is likely to reflect Australia's emergence as the tip of the spear for the extreme physical manifestation of climate impact. It has become one of the most active jurisdictions for climate change litigation activists.
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| Title | File Type | File Size |
|---|---|---|
| D&O Directors Liability Survey WTW Regional overview Australasia | 2.3 MB |
