Page 8 - Internal Auditor M.E. - June 2019

Knowledge Update

By: Vishal Thakkar
Top 2019

Risks for

Internal Audit:

Data-Related

Issues Looms

Large

As per the 2019 Gartner annual Audit Plan Hot Spots Cost and growth pressures
report, the growing strategic importance of data is While seeking cost efficiencies and implementing
a critical emerging risk area for heads of internal new growth strategies, organizations must ensure
audit. Following 4 critical risk themes emerge as
internal audit teams prepare for 2019: that it does not weaken the control environment or
leave governance and oversight behind resulting
Strategic importance of data from interconnected relationships with third parties.
Organizations that effectively can leverage data can
surely increase its competitive advantage, unlock
business value and enhance compliance efforts but Shortened planning horizon
big data also creates potential big risks such as The number of disruptions impacting business
quality of data, privacy protection and responsible operations is growing at a fast pace, and this
use. instability threatens to precipitate economic decline
and increase regulatory scrutiny. This environment
IT vulnerabilities makes planning long-term strategies more complex
While implementing new technologies to gather the
data, Organizations must not overlook associated for the organizations.
security concerns such as cyberattacks and
cloud computing risks like data loss, outages and https://www.gartner.com/smarterwithgartner/data-related-issues-
inappropriate data access. feature-among-top-2019-risks-for-internal-audit/

Elevating internal audit’s role: The digitally fit function

As organizations are quickly moving through the • Collaborating and aligning to provide a
digital transformation, internal audit functions that consolidated view of risks.
are more digitally fit, can more effectively help
their stakeholders make better decisions and take Internal audit digital fitness mean the following:
smarter risks. The stakes from digital initiatives • Having the skills and competencies to provide
are high from both i.e. in gaining opportunities strategic advice to stakeholders and to provide
as well as missed threats. Following six habits assurance regarding risks from the organization’s
were identified that lead to more-digitally-fit risk digital transportation.
functions: • Changing its own processes and services to
• Go all-in on the organization’s digital plan. be more data driven and digitally enabled so
• Upskill and inject new talent to move at the that the function can align with organization’s
speed of the organization. strategic risks in order to anticipate and
• Find the right fit for emerging technologies. appropriately respond to the risk events
• Enabling the organization to act on risks in real effectively and efficiently within time the he
time. organization’s digital transformation needs.
• Actively engaging decision makers of key digital https://www.pwc.com/us/en/services/risk-assurance/library/
initiatives. internal-audit-transformation-study.html

8 INTERNAL AUDITOR - MIDDLE EAST JUNE 2019