In its recent "Risk in Focus 2023" report, the European Confederation of Institutes of Internal Auditing (ECIIA) presented the results of its survey of 834 Chief Audit Executives (CAEs). The survey, in part, asked respondents to rank the top five risks their organizations currently face.
The top operational risks reported by the CAEs include: cybersecurity; human capital; change in regulations; digital disruption; climate change; business continuity; supply chain and outsourcing; and organizational governance.
The ECIIA lays out several recommendations for how organizations can manage these risks. For example, the report suggests that boards work with their internal audit function to ensure that strategies align with the organization's vision, purpose, and values.
"There are few obvious, easy answers to these problems," the ECIIA writes. "But internal auditors are uniquely placed to play their part in developing long-term solutions that have a real impact on organisations and the communities they serve. They need to secure from the board the resources and remit to tackle the most pressing risks with urgency."
Early next year, Starling will publish “Renal Failure: A Crisis in Audit Culture?” a Deeper Dive Supplement to our 2022 Compendium, which will discuss why auditors, both internal and independent, are essential to a well-functioning economy and stable society.