March 24, 2025 from HRD Canada
Health and Safety Still Top Risk for Employers Globally in 2025
For the second consecutive year, workplace health and safety has been identified as the leading risk facing directors and officers worldwide. According to the newly released Global Directors’ and Officers Survey Report from WTW and Clyde & Co, 80% of respondents consider health and safety to be a very or extremely important concern in 2025.
“Health and safety remains the number one risk globally, showing that last year’s result wasn’t an anomaly,”
said Angus Duncan, Global D&O Coverage Specialist at WTW.
Physical and Mental Health Take Priority
Within the broader health and safety category, physical safety in the workplace topped the list with 43% of respondents naming it as their main concern. However, mental health is also gaining attention:
- 28% cited workplace factors affecting mental health and wellbeing
- 17% were concerned about client or third-party safety related to products or services
- 12% pointed to personal matters impacting mental wellbeing of leadership and staff
The focus on health is consistent across multiple regions, including Europe, Latin America, the Pacific, and Africa.
Why Health and Safety Continues to Dominate
While WTW notes the exact reasons for the ongoing concern aren’t definitive, several contributing factors are clear. Recent legal reforms and high-profile enforcement cases have raised the stakes for employers, particularly in jurisdictions like Australia.
“In Australia, industrial manslaughter has now been introduced in all states and territories, and a number of workplace legislative reforms came into effect in 2024,” the report stated.
The long-term impact of the pandemic has also played a role. Employers have become more aware of the need to protect not just physical safety, but also the mental health of their workforce. The report emphasized a shift in boardroom thinking.
“There is also a growing willingness by boards to accept that mental health is as important as physical health,” it said. “Companies that consider and look after their employees’ wellbeing lead to greater productivity and improved financial performance.”
Cyber Threats and Data Loss Not Far Behind
Tied closely behind health and safety were risks related to data loss and cyber-attacks, each cited by 77% of surveyed directors and officers. These risks have remained near the top of the list due to their potential for severe financial and reputational damage.
WTW stated in a related article that
“It is no surprise that these risks remain near the top. Significant costs can flow from data loss, which is often (but not always) linked to a cyber event.”
Governments are stepping up their cybersecurity and privacy legislation in response:
- In the UK, the Data (Use and Access) Bill is moving through Parliament to reinforce data handling standards
- A new Cyber Security and Resilience Bill aims to bolster digital infrastructure protections
- Australia is proposing reforms to privacy laws, including a controversial statutory tort for serious invasions of privacy
Civil Litigation Joins the Top Seven Concerns
This year’s survey also marks the first time civil litigation has cracked the top seven concerns since tracking began in 2018. Nearly two-thirds of respondents (63%) now rank it as a very or extremely important risk.
WTW attributes the rise in concern to a combination of factors, including:
- The growing impact of class actions and litigation funding
- Social inflation and regulatory scrutiny
- Increased consumer activism and anti-corporate sentiment
- Parent company liability and jurisdictional forum shopping
“Increasing legislative reform, regulatory and shareholder scrutiny, and individual accountability are driving companies and their leadership to prioritise holding the best possible protection,”
said Patrick Beckett, Head of Executive Risks, Pacific at Willis.
“By integrating expertise, insight, and analytics into D&O insurance programmes, businesses can move forward with confidence.”
Considering an IME or document review to resolve an insurance claim, legal file, or workplace health and safety issue?
Our specialists provide evidence-based opinions, so get in touch with Western Medical today to learn more about our services.