Internal Audit Emerging Risks for 2021 and Beyond – Part 1

The world has changed. 2020 was an unprecedented year for all professions. Internal auditors were faced with a tremendous impact to their audit plans causing refocus and realignment of not just projects but resources. As a profession, internal auditors have traditionally focused on past events or as some would say, taking the “look in the rear-view mirror. Most financial or accounting professionals can look at previous year data and tell management where past mistakes were made.

With the evolving landscape, risks and economy that have been spurred on by the pandemic of 2021, internal auditors must look to stretch their skills to areas that are most valued by their organizations. Today’s insight may well be tomorrow’s hindsight.

Stakeholders seek to navigate the future more than revisit the past or dwell in the present. We need to concentrate on the risks of tomorrow if we are to not only protect but enhance value for our organizations. We must start looking beyond the horizon to identify emerging risks.

This is part one in a four-part series in which we will take a deep dive into the individuals suggested risk areas. In this session we will examine three areas of focus and some of the most impactful risks that Internal Audit should focus on during the new normal.

• Heightened Focus on Organizational Resilience
• Elevated Macro Environment Uncertainty
• Humanization vs. Dehumanization of the Workforce 

After reviewing these areas, we will then link them to “Hot Spot” topics as identified by the Gartner group that internal audit should be attuned to in 2021 and years forward. Within each part, as we delve into the hot spot areas, we will discuss internal audit’s role and objectives as well as potential audit tests that should be considered when evaluating the particular hot spot.

This session begins by examining the three focus areas previously listed and then begins to delve into the first two Hot Topic areas of IT Governance and data governance.