Cyber risk, climate change and individual accountability have been named as the top three risks facing companies globally, according to a survey conducted by Clifford Chance and the Economist Intelligence Unit.
The survey involved 200 board members of companies across the world, including those from 58 companies headquartered in the Asia Pacific region.
It found that 47 percent listed cyber as a top-three risk priority in 2019, a more than threefold jump from a similar survey conducted by Clifford Chance in 2014. In particular, APAC-headquartered companies were the most concerned about incidents or scandals arising from data protection or cyber. The survey also showed that 54 percent of boards have taken action to address risks of physical interruption to business operations by climate-related risks.
On the topic of personal accountability, 89 percent agree that board members should be held accountable for illegal and unethical uses of technology. Another 84 percent say board members should be personally accountable for meeting diversity and inclusion targets. However, board members at companies headquartered in APAC are comparatively the least concerned with the increasing exposure to personal liability as a barrier to joining boards as non-executive directors (85 percent vs a global average of 63 percent).
Also noted in the survey was that financial risk is still the most discussed form of risk by corporate board members, but less so than before – 52 percent of respondents in 2019 say financial risk is a current top three priority focus, compared to 75 percent in 2014.
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