Internal Audit: Risks and Opportunities for 2022

Risk is often thought of as inherently negative, but a more-nuanced view perceives a complex duality. Yet for every risk there is an equal opportunity.   

There's little doubt why the negative aspect of risk predominates. In recent years, the world has witnessed an unprecedented confluence of multiple threats, many of which have spawned, entwined with, and/or exacerbated the others. A severely truncated list includes the global pandemic, climate change, labor shortages, supply chain disruptions, cyber threats, and political and social upheaval. Considered in the aggregate, these and other threats have shaken the very foundations upon which society and business are built. 

Internal audit

Internal audit (IA), like risk itself, is often misunderstood. The profession has historically suffered from unfavorable perceptions, often being seen as a policing body or as a group of scolds who swoop in to report on what went wrong.

However, a more progressive and expansive definition of internal audit also contains a duality: essential providers of both assurance and advisory services. Internal audit is rightfully wary of the multitude of risks, and the function will always be charged with protecting their organizations through assurance. But truly evolved internal audit groups will also seek to help management navigate future challenges and make more-informed decisions, taking full advantage of the concurrent opportunities that every risk offers.