As we are drafting this post, our social media handles are buzzing with news on Brexit, Chilcot Report and many more International Current affairs. At this time when International economy is getting transformed and Technology is reaching new forefronts, it becomes imperative to gain insights on how Businesses around the globe are going to be impacted. In an environment where Companies worldwide are re-designing their Strategies and Business goals, Internal Audit functions are evolving as well. With rise of Social Media, Digital and Mobile channels, it becomes even more relevant to ponder upon how these Transformations can leverage Internal Audit.
At this time when IIA will be celebrating it’s 75th year of Establishment, we put forward our expertise in serving Audit Industry with Robust and Agile GRC Solutions and Excellence in Emerging technologies into this post on how Internal Audit will be revolutionized in near future.
The critical question over here is : What changes in Internal Audit should we anticipate ?
In this and subsequent posts we will discuss the top 5 changes as per Industry Experts that are going to change the way IA will function. Today we will focus on the first and the most important transformation that already has knocked IA doors since a while now, that’s the enhanced ability of IA Functions to monitor Risk
Enhanced ability to monitor Risks
Though conventional methodologies of Internal audit have served their purpose for decades , as the Business landscape becomes increasingly complex and fast paced, there is a slow but steady inclination towards leveraging advanced Business analytics to divert the focus on Risk Management. Leading IA functions are leveraging IoT, Big Data, Data mining and data visualization tools to deliver Robust results in response to Risk and gain insights into Organizational data.
As companies respond to dynamically changing markets, the Risks they face are often uncharted while their potential impact on the business’s objective is substantial. Modern Internal Audit functions have started to realize this and are adapting to the changing Risk landscape. Important IA functions are even involved in taking significant initiatives to be able to focus on Strategic Risks prior to Risk occurrence.
There is a lot that can be achieved in Internal Audit with Effective Risk Management processes. However, in order to enable that , Audit Committee needs to answer the following questions
- Where does Internal Audit stand in your Company’s Transformational initiatives?
- Are the current IA processes providing proactive perspective on Strategic Risks?
- How is Internal Audit adapting to ERM across your company?
Give us your feedback on these insights at firstname.lastname@example.org and we can take up this dialogue further. In our next post, we will discuss about the second very important aspect of the Modern Internal Audit. Stay tuned and participate..!!
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