Physical workplace risks deemed most important concern for business leaders worldwide

According to a recent survey, business directors and officers across the globe agree that physical workplace risks are of the utmost concern in 2025.

New data retrieved by Willis (WTW) and Clyde and Co has shown that physical workplace risks reign supreme as the top business concern (43 per cent), with employee mental health and wellbeing consequences stemming from work (28 per cent) and from personal matters (12 per cent) following in behind.

The global survey showed that both Australia and New Zealand were a part of the only region that touted insolvency, bankruptcy, and financial distress in the top seven risk concerns. On top of that, data loss and cyber attacks – including extortion – were noted as very important concerns to Australian and New Zealand business leaders.

“The 2025 survey results highlight the breadth and weight of the challenges faced by directors and officers today,” said Patrick Beckett, head of executive risks, Pacific, at Willis.

“Increasing legislative reform, regulatory and shareholder scrutiny and individual accountability, are driving companies and their leadership to prioritise holding the best possible protection, at an appropriate cost. By integrating expertise, insight, and analytics into D&O insurance programmes, businesses can move forward with confidence.”

As previously reported on HR Leader, Aussie businesses feel burdened by the government’s industrial relations (IR) reforms – claiming they are “grappling” with the impacts of the changes.

“This situation raises critical questions about the viability of starting and running a business in Australia. Beyond the debates and political manoeuvres, the real impact on employers and Australia’s position in the global employment market has become an afterthought,” said Employment Hero CEO Ben Thompson.

“The ‘Right to Disconnect’ law, for instance, adds to the compliance burdens, despite its intentions, contributing to a landscape that seems increasingly hostile to business owners.”

In terms of the other results from the WTW survey, globally, civil litigation and third-party claims were included among the top seven concerns for the first time since 2018, with 63 per cent of directors and officers (D&O) touting them as significant risks.

DEI and human rights issues were also pointed towards as a top concern, as breach of human rights within or by business operations has risen from 23 per cent in 2021 to 62 per cent in 2025. For Australia and New Zealand, this remained as a top seven concern, despite recent discourse surrounding ANZ-based organisations rolling back DEI initiatives.

Speaking on the findings, James Cooper, partner and head of financial institutions and D&O at Clyde and Co, said: “The risk landscape for directors and officers is fast evolving and complex, driven by a multitude of factors from geopolitics to tech advancements and a challenging economic climate. Identifying the most critical risks and understanding where pressure points may appear is crucial in successfully navigating existing and emerging challenges.

“So, too, is ensuring that protections such as D&O insurance reflect this changing environment and can adequately cover areas where leaders may feel more exposed, such as cyber attacks or data loss.”