New Report Reveals Top Concerns of Internal Auditors Globally

A comprehensive survey conducted by the Internal Audit Foundation, part of The Institute of Internal Auditors (IIA), has shed light on the prevailing concerns of internal audit leaders across the world. The report, titled "Global Risk in Focus," gathered insights from internal audit leaders spanning Africa, Asia Pacific, Europe, Latin America, the Middle East, and North America to identify and analyze the most prominent risks affecting their respective regions.

Key Findings of the Report

The survey findings reveal several critical trends and concerns among chief audit executives (CAEs) worldwide:

1. Cybersecurity Takes the Lead: Cybersecurity emerged as the foremost concern, with a staggering 73 percent of CAEs globally identifying it as a prominent risk. The omnipresent threat of cyberattacks continues to keep organizations on high alert.
2. Human Capital Issues: Approximately 51 percent of respondents cited human capital issues as a significant risk. This includes concerns related to workforce management, talent acquisition, and employee retention, highlighting the critical role of human resources in organizational stability.
3. Business Continuity: Business continuity emerged as a top risk for 47 percent of CAEs. The COVID-19 pandemic exposed vulnerabilities in business continuity planning, prompting organizations to reevaluate and strengthen their resilience strategies.
4. Regulatory Change: Regulatory change was another substantial concern, with 39 percent of CAEs recognizing it as a risk. Evolving regulatory landscapes can pose challenges to compliance, necessitating a proactive approach.
5. Digital Disruption: A total of 34 percent of CAEs expressed apprehensions regarding digital disruption. The rapid pace of technological advancements and their impact on industries and markets is a key area of focus.

Future Risk Projections

Looking ahead, CAEs anticipate significant shifts in the risk landscape over the next three years:

1. Digital Disruption to Escalate: CAEs foresee a notable increase in digital disruption-related risks, with figures projected to surge from 34 percent to 55 percent. This reflects the ever-evolving nature of technology and its implications for businesses.
2. Climate Change Concerns: Climate change is expected to gain prominence as a risk, with projections indicating an increase from 19 percent to 39 percent. Sustainability and environmental considerations are poised to become more central to corporate agendas.

A Global Perspective on Risks

The "Global Risk in Focus" report represents a pioneering effort to provide a global view of risks through the lens of internal audit professionals. It builds upon the framework of the European Institutes Research Group's annual "Risk in Focus" report and aims to promote a deeper understanding of the risks facing organizations.

The project was a collaborative endeavor, facilitated by the Internal Audit Foundation, and saw the participation of CAEs and directors from 111 countries and territories. The findings were complemented by insights gathered from roundtables and in-depth interviews, resulting in a comprehensive assessment of global risk concerns.

The "Global Risk in Focus" report underscores the importance of addressing cybersecurity, human capital, business continuity, regulatory change, and digital disruption as primary risk areas. As organizations navigate a dynamic business landscape, staying vigilant and responsive to these risks will be paramount to their success and resilience.