The set of risks any director faces are unique. Some will be dependent on the nature of the business and their approach to risk taking but others come down to the broader market and economic environment.
These broader market conditions change too, with new risks and potential liabilities emerging. A good example of this is the way the world has changed post-pandemic. As normality returned, demand for goods soared, resulting in rising prices and inflation but also supply chain issues as manufacturers struggled to get their products to market.
Risk management activities such as reviewing the supply chain and assessing ESG practices, can help reduce some of these risks but insurance also has an important role to play.