The research, carried out by law firm Allen & Overy in conjunction with advisory and insurance broker Willis Towers Watson, also revealed that at least 33 percent have experienced a claim or investigation involving a senior manager of their company (up from 27 percent a year ago).  Surveying c-suite directors, it also highlighted the fact that  only 43 per cent are aware of the Financial Conduct Authority’s proposals to extend the Senior Managers Regime to all directors of FCA regulated UK companies. 

Regulatory challenges

The survey results highlighted the regulatory challenge facing many organisations from increasing FCA scrutiny and the emergence of new regulation including the extension of the Senior Managers Regime and Corporate Governance reform. Additionally, the survey showed that new and emerging risks such as cyber and data loss are of increasing concern at board level with one in four (24 per cent) having experience of a cyber-attack or data loss serious enough to get the attention of the board.

More business risk

Joanna Page, partner and head of A&O’s Insurance litigation group, commented: 'What’s clear is that directors and officers are under increasing scrutiny, with greater emphasis being placed on personal accountability and liability.   Allied to this is the broader uncertain geo-political environment, not least the impact of Brexit, and a raft of new regulation and legislation. It’s clear that corporate leaders feel, and are, exposed to a broader range of risks than ever before across the entirety of their business operations.'

Liability concerns

Francis Kean, executive director in Willis's financial and executive risks practice (FINX), commented: 'It is no surprise that in all five of our annual reports, the threat of regulatory investigation has topped our poll of liability concerns. Now for the first time though there is independent evidence to support the fact that this threat has become reality. As explained in the report, there has been a recent and striking increase in investigations opened by the Financial Conduct Authority against individuals.'