A new survey of internal audit leaders on global risks finds that Cybersecurity (73 percent), human capital issues (51 percent), and business continuity (47 percent) are the most prevalent risks across the globe.
The study, conducted by the Internal Audit Foundation, part of The Institute of Internal Auditors (IIA), surveyed internal audit leaders across Africa, Asia Pacific, Europe, Latin America, the Middle East, and North America to get a pulse on the greatest risks impacting their regions. It also finds that over the next three years, CAEs across all regions expect risk levels to increase dramatically for digital disruption (from 34 to 55 percent) and climate change (from 19 to 39 percent).
“The Global Risk in Focus report provides practical, data-driven research to help internal auditors and their stakeholders understand the current risk landscape and prepare internal audit plans for the years ahead,” the report’s authors said in a statement. The research represents an ambitious expansion of the European Institutes Research Group’s annual Risk in Focus report and provides the first global view of risks from an internal audit perspective.
“In Europe, we’re excited to share our Risk in Focus methodology with other regions around the world so that, together, we can have a full understanding of global risks facing boards and internal auditors,” said Pascale Vandenbussche, Secretary-General for the European Confederation of Institutes of Internal Auditing (ECIIA).
“By creating this global look at risks from an internal audit perspective, we’re providing an invaluable resource that allows internal auditors and their organizations to understand risk in an unprecedented way and raise these risks with their boards in a solution-oriented manner,” said IIA President and CEO Anthony Pugliese.
Global Risk in Focus is a series of reports customized for six global regions. Each region features two resources: 1) Hot Topics for Internal Auditors and 2) a Board Briefing summary that internal auditors can share with stakeholders. The reports are based on the results of a survey to identify current and emerging risks for each region, with additional insights gleaned through focus groups and interviews to discover leading practices for internal auditors. Although there were many similarities across regions, unique themes did emerge for each region.
Key Findings of the Report
Cybersecurity (73 percent), human capital (51 percent), business continuity (47 percent), regulatory change (39 percent), and digital disruption (34 percent) are the top five risks that chief audit executives (CAEs) see currently impacting their organizations across the globe.
Over the next three years, CAEs across all regions expect risk levels to increase dramatically for digital disruption (34 percent to 55 percent) and climate change (from 19 to 39 percent).
North American respondents view cybersecurity (85 percent), human capital (65 percent), and regulatory change (43 percent) as the top three risks currently impacting their organizations.
Global Risk in Focus is a collaborative partnership facilitated by the Internal Audit Foundation with regional reports sponsored by AuditBoard in North America, ARABCIIA in the Middle East, AFIIA in Africa, ECIIA in Europe, FLAI in Latin America, and ACIIA in Asia Pacific, along with support from local IIA Institutes.
For the Risk in Focus 2024 project worldwide, survey responses were received from 4,207 CAEs and directors in 111 countries/territories. Eighteen roundtables were conducted with 152 participants, followed by 40 in-depth interviews. 