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When considering how directors of SME businesses perceive risk, it is important to be aware of their different industry backgrounds, to understand their emotive and personal connection and to help guide them through the process, discussing the available options (negotiation, mediation, litigation) before pursuing a course of action that delivers the optimal result for them. Key risks facing individuals include: Key risks for D&Os
Health & Safety Protecting the health and safety of
Cyber Attack & Data Loss Cyber risks are ever-evolving and with the availability of (AI) tools, cyber threat actors are beginning to integrate AI into their operations making such attacks more potent and adding further pressure on D&Os to implement cybersecurity controls and to react efficiently and effectively in the face of an attack. This goes hand in hand with data loss, significant fines can be issued by data protection authorities following a breach and the law is still developing on claims from data subjects.
Regulatory Breach There are a host of regulators who are increasingly exercising their supervision and enforcement powers, all contributing to the regulatory space being a difficult one to navigate for D&Os. In the UK, FCA enforcement activity remains a substantial exposure and the burden has increased this year with the introduction of the Consumer Duty, which sets higher expectations for the standard of care that firms provide to consumers. Also, with ever expanding ESG reporting requirements being introduced, D&Os need to be aware of their obligations in this area.
employees, or members of the public who may be affected by work activities, is an essential part of risk management and must be led by D&Os. 2023 saw highly publicised fines alongside a noticeable uptick in enforcement notices issued by the Health & Safety Executive (HSE) and reports of the HSE’s impressive 94% conviction rate of individuals.
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