Risk Considerations for Boards
As boards consider how to operate in a riskier world, it’s important to examine priorities for how internal audit and audit plans are being used. The IIA’s 2022 North American Pulse of Internal Audit report confirms that an array of risks remain top of mind for chief audit executives (CAEs). At the same time, a majority of boards of directors have raised or expect to raise their risk appetite this year, according to a Gartner survey. That’s not surprising, given the uncertainty of the last two years and the ongoing unexpected developments affecting domestic and global economies.
Yet, these risks aren’t necessarily being reflected in audit plans.
The April issue of Tone at the Top looks at risks in two key areas — cybersecurity and sustainability — and explores how organizations and boards are reflecting their concerns to internal audit for inclusion in audit plans. It also considers the value that internal audit can offer boards, and how boards can ensure they make the most of that value.
Key takeaways include the following:
- Cyber risks are rising, as SEC disclosures are ramping up.
- Sustainability is more important than ever, as ESG issues grow.
- Audit plan priorities are being adjusted, as are outlooks of the board.
- Smart investments are important, as are those related to staffing and technology.
Download the latest issue, share it with your organization’s board, audit committee, and senior management, and collectively be reminded that internal audit is a powerful tool for the board and one that can help directors protect their organizations from a wide array of current and emerging risks. Respond to the latest Quick Poll question: “Is the board aware of whether the internal audit plan reflects the organization’s risk priorities?”