As the digital transformation of business accelerates, risk and internal audit leaders shift their focus to managing technology-driven risk, according to AuditBoard.
The report reveals a growing gap between risk and assurance teams’ capacity to manage risks effectively and the reality of today’s state of “permacrisis,” an extended period of instability and insecurity marked by one disruptive crisis following another.
Key risks
In a continuation of a trend identified by the 2023 survey, the top 2024 risk cited by internal audit leaders is cyber and data security, with more than 80% of respondents not only rating this risk highly but also giving it the top spot for expected audit efforts in 2024.
However, the survey also found risk and internal audit teams are still dedicating fewer resources to addressing some key risks, including two top-ranked risk areas — changing economic conditions (ranked #2), and the ability to attract and retain talent (ranked #3) — that received insufficient audit focus in 2023. This misalignment is expected to continue in 2024.
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