Written by Elise Perraud, NEDonBoard COO
In September, NEDonBoard, jointly with our partner McGill and Partners conducted a survey to identify sources of risk exposures and what they may translate into for non-executive directors and board members when it comes to personal liability risk.
What do you think you company’s biggest risk exposures are?
Reflecting economic headwinds, macro-economic factors is your top risk exposure. While the macro-economic environment is challenging, respondents are not overly worried about corporate insolvency. Other factors included COVID-19 related challenges such as delays, recruitment, and restrictions.
Cyber attacks and system failures came closely behind macro-economic factors. To contribute to building resilient organisations and managing cyber risk, please refer to the resources available on the NEDonBoard platform:
Related post: Managing cyber risk to build resilient organisations
What do you believe are your most significant personal liability risks?
Company insolvency ranks high in terms of your perceived personal liability risk. In a corporate insolvency scenario, control shifts to liquidators and as a NED, you may also be subject to a regulatory investigation.
In the event hosted on 5th October, portfolio NEDs and NEDonBoard members, Calum Mercer and Marcia Cantor-Grable provided great insights into regulatory investigations and how NEDs, trustees and directors can mitigate such a risk.
Safeguarding, fraud, audit failure and ESG were listed among sources of personal liability risks in the “Other” section. Claims typically related to fraud, bribery, corruption and regulatory investigations.
How well do you understand ESG?
Respondents assessed their understanding of what ESG as “well” or “very well”. However, ESG was listed among the risk factors. While the meaning of ESG may be well understood, lots of companies and institutions struggle to apply ESG.
New to the non-executive director role? We invite you to watch our acclaimed webinar How to secure your first NED role. Registration link here.