Geopolitical risk is now one of the biggest concerns for directors and officers worldwide, according to the latest Directors and Officers Liability Insurance Survey by Willis, a WTW business, and Reed Smith LLP.
The risk moved into the survey’s top seven global concerns this year, up from 15th place last year among the 30 risks covered. Around 59% of directors and officers now consider geopolitical risks very important or extremely important to their organization.
The change reflects how directors and officers are being asked to manage a more complicated risk environment. Long-running concerns such as regulatory compliance, financial management, and health and safety remain important, but they are now being weighed alongside faster-moving risks tied to global instability, technology, cyber threats, and supply chains.
Artificial intelligence is one of the clearest examples of that shift. Globally, 56% of respondents said AI is a very important or extremely important risk for directors and officers, up five percentage points from the previous survey.
Concern was especially high in North America, where 71% of respondents rated AI as a very important or extremely important risk.
The main AI-related concerns were not limited to the technology itself. Half of respondents cited AI-generated errors and misinformation, while 40% pointed to AI-enabled fraud and social engineering. Another 38% identified the risk of failing to adopt AI as part of business strategy.
That concern is also tied to board readiness. Only 55% of respondents said their board members have the skills and knowledge needed to provide effective oversight of AI implementation.
While newer risks are moving higher, traditional exposures have not disappeared. Health and safety remains a major concern, particularly in sectors with large physical operations. In the industrial, transport, and energy sectors, 82% to 89% of respondents rated health and safety as a very important or extremely important risk.
The survey also found that organizations generally believe their directors and officers insurance coverage is adequate, although confidence is stronger in the scope of coverage than in the amount of protection available. Around 77% said the scope of their D&O insurance was adequate, while 73% said the same about their financial limits.
Indemnification levels also edged lower. The share of organizations that indemnify directors and officers to the fullest extent allowed by law fell to 62% from 64% in the previous year.
Operational resilience is another area where companies are seeing pressure. Increased risk exposure from third parties or supply chain constraints was identified as the top operational resilience challenge by 39% of respondents.
Supply chain issues ranked among the top seven concerns for organizations in healthcare, industrial, energy and utilities, transportation, and retail, showing how external pressures can translate into board-level risk across multiple sectors.
At the same time, some risks moved lower in the rankings. Climate change fell out of the top seven risk ranking in most regions. Diversity, equity and inclusion also declined on the global risk agenda, with 52% of respondents saying they consider it very important or extremely important, which is down from 59% in 2025.
