Supply chain disruption
One example of multi-layered complexity is the recent supply chain disruption. This caused a crisis where demand was difficult to forecast, goods were hard to source, transportation was hard to find, and routes were backlogged and unpredictable. Volatility rippled throughout the supply chain and introduced significant risks to business models and processes, putting it high on the agenda for many organisations.
Our survey found that 33% of Irish IA functions address supply chain disruption in their audit plan (versus 47% globally), and 21% plan to do so in the next one to three years (versus 34% globally). Many, however, wonder how they can tackle risks and disruptions with such scale and speed.
Andy Banks, PwC Ireland’s Internal Audit Leader, highlights that “While much responsibility to manage supply chain risk falls on the first and second line, the third can add value by sharing insights, advising on risks and providing assurance over what the second line is doing.”
IA realises that to address the speed of these risks, all parts of the business need to be aligned with second and third lines of defence working alongside the business to ensure…
