Cyber threats have overtaken other concerns as the primary reputational risk for leisure and hospitality companies, according to new data from WTW’s 2024/2025 Leisure and Hospitality Reputational Risk Report.
In a global survey of 100 senior executives across companies with revenues exceeding US$1 billion, 77% cited the potential impact of a cyberattack as one of their top reputational concerns. This marks a sharp increase from just 17% in 2023.
The findings highlight the growing reliance of the sector on digital technologies and the corresponding exposure to cyber-related disruptions. WTW notes that a company’s reputation can be affected by a range of issues – from mislabelled food products to crisis mismanagement during weather events – all of which are now amplified in a highly digital and polarised environment.
This latest data aligns with a broader trend observed by WTW in a parallel global study where 65% placed cyber risks at the top of their reputational concerns. This wider dataset also showed 64% identified environmental matters and 56% cited governance as key threats to corporate reputation.
Environmental, social and governance (ESG) issues also continue to be a reputational concern despite growing political debate over their role. Among those surveyed, 65% identified environmental issues as a top concern, while 60% pointed to governance, reflecting the increasing formalisation of ESG obligations through regulation across various jurisdictions.
Despite the increased focus on reputational risk readiness, WTW noted a drop in firms’ modelling capabilities to quantify reputational loss. Just 11% of leisure and hospitality companies surveyed reported strong financial modelling abilities to estimate the cost of a reputational event, down significantly from 74% in 2023 and 87% in 2022.
WTW found that risk and financial stakeholders are taking a more prominent role in reputation management, moving away from viewing it purely as a branding concern. Among respondents, 92% said they have formal processes in place for identifying and managing reputational risk, with 24% linking these processes to board-level key performance indicators (KPIs), an increase from 21% in 2023.
Most companies surveyed reported increased crisis preparedness. WTW’s data shows that 93% have formal crisis teams that train and respond to reputational incidents, with 28% linking team activity to KPIs – up from 21% last year.
This shift in readiness is further supported by WTW’s D&O survey, which found that 53% of corporate boards already carry cyber coverage, with another 18% planning to do so within two years.
While cyber claims have decreased by around 20% since 2023, they continue to represent a high-cost and high-frequency risk, contributing to their prominence in boardroom-level risk conversations.
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