Health & Safety is Now the #1 Corporate Risk—Are You Prepared?

A historic shift is taking place in corporate risk management. For the first time ever, health and safety risks have been ranked as the #1 concern for directors and officers globally, overtaking cyber threats, regulatory compliance and financial risks.

This key finding comes from the Global Directors’ and Officers’ Survey Report 2024, conducted by WTW, a British-American multinational company providing data-driven, insight-led solutions in the areas of people, risk and capital. The report gathered insights from 900+ directors, officers and risk managers across 52 countries. Covering a wide range of industries and regions, including newly added insights from Africa, the Middle East and India, the report provides the most comprehensive view yet of the risks facing corporate leadership.

What Is the Global Directors and Officers Survey?

The annual Global Directors and Officers (D&O) Survey examines the top risks perceived by directors, officers and risk managers worldwide. By tracking shifts in risk priorities and identifying emerging threats, the survey helps organizations strengthen risk management strategies, governance and insurance coverage.

The Rise of Health and Safety Risks: A Game-Changer for Corporate Leaders

For years, cybersecurity and data privacy held the top position in global risk rankings. However, in 2024, health and safety concerns surged to the #1 spot, with 84% of respondents rating it as “very” or “extremely important”—a sharp increase from just 45% over the past three years.

This dramatic rise signals a fundamental shift in how directors and officers perceive their legal and financial exposure. No longer just an operational concern, health and safety is now a core corporate risk that carries serious regulatory, financial and reputational consequences.

Why Is Health and Safety Now the #1 Risk?

Several factors have contributed to this shift, but four key ones stand out:

1. Increased Regulatory Scrutiny and Enforcement

• High-profile corporate fines and individual prosecutions have made health and safety failures more costly than ever.

• In the U.K., 2023 saw a surge in enforcement actions, including a 94% conviction rate for individuals charged under health and safety laws.

• Regulators worldwide are tightening safety laws and raising penalties for non-compliance.

2. Greater Director and Officer Accountability:

• Senior leaders can no longer delegate health and safety responsibilities—they are being held personally liable.

• Lawsuits, criminal charges and executive disqualifications are increasing in cases of workplace safety failures.

3. A Shift in Corporate Culture and ESG Pressures:

• Investors, employees and stakeholders are demanding stronger safety commitments as part of ESG (Environmental, Social and Governance) standards.

• Companies that fail to prioritize safety risk losing investor confidence, talent and market reputation.

4. Workplace Safety Incidents Are on the Rise:

• Workplace injuries and fatalities remain a global challenge, with falls, transportation incidents and hazardous exposures continuing to top safety incident reports.

• Emerging risks, such as mental health, remote work ergonomics and AI-driven safety concerns, are reshaping how companies manage workforce well-being.

The Legal and Financial Impact of Poor Safety Management

Health and safety risks aren’t just about compliance—they carry serious financial and legal consequences for organizations and their leadership:

• Fines and Penalties: Organizations face multi-million-dollar fines for failing to meet safety standards.

• Personal Liability for Executives: Directors and officers are being held personally accountable, with increasing prosecution rates.

• Reputational Damage: High-profile safety failures can damage brand reputation and lead to the loss of investor trust.

• Rising Insurance Costs: Poor safety records can increase D&O insurance premiums, making risk transfer more expensive.

What Should Organizations Do Now?

With health and safety now recognized as a top-tier business risk, directors and officers must act now to strengthen their safety and risk management strategies.

• Invest in Proactive EHS Programs: A reactive approach is not enough—organizations need proactive safety policies, digital tools and training to reduce incidents.

• Enhance Executive Oversight: Leadership teams must actively engage in safety governance and ensure compliance across all levels.

• Align Safety with ESG Strategy: Safety performance is increasingly tied to investor expectations, sustainability goals and corporate reputation.

• Ensure Comprehensive D&O Insurance Coverage: Companies must reassess their D&O insurance policies to cover emerging risks related to health and safety liability.

The Big Takeaway

The 2024 Global Directors’ and Officers’ Survey signals a major shift in corporate risk management, with health and safety now ranked as the #1 risk. To stay ahead, companies must go beyond compliance and invest in scalable, intuitive health and safety software that grows with their business.

A comprehensive yet easy-to-use solution ensures organizations can effectively manage risks, strengthen safety leadership and maintain regulatory compliance—without adding complexity. The message is clear: Health and safety isn’t just an operational concern; it’s a business-critical priority that requires the right technology to support it.

To learn more about how the right health and safety software solution can reduce risk within your organization, click below!