The "Risk in Focus 2025" report, published by ECIIA | European Confederation of Institutes of Internal Auditing, provides critical insights into the emerging risks that internal auditors must prioritize in the coming year.
Cybersecurity and Data Security
#Cybersecurity continues to dominate the #risk landscape, cited by 83% of respondents as a top concern. The report highlights the escalating nature of cyber threats, particularly with the rise of AI-powered attacks and state-sponsored cyber activities targeting critical infrastructure. Internal auditors are tasked with ensuring that cybersecurity measures are robust and continuously evolving to meet these threats. Effective governance processes that integrate both traditional and emerging technologies are essential for safeguarding organizational assets. The report also emphasizes the need for vigilance against deepfake technology and hybrid cyber-attacks, which are becoming more sophisticated and prevalent.
Digital Disruption, New Technologies, and AI
The fast pace of #digital #disruption, particularly with #AI advancements, is a growing concern. Organizations are under pressure to integrate AI into their operations, which introduces new governance, cybersecurity, and talent challenges. The report advises internal auditors to closely monitor how these technologies are being implemented and governed, ensuring that AI initiatives are strategically aligned and effectively managed to mitigate risks.
Climate Change, Biodiversity, and Environmental Sustainability
The report emphasizes climate change's growing significance as one of the top risks. By 2028, climate-related risks are expected to become even more critical due to increasing regulatory pressures, particularly in Europe with the Corporate Social Responsibility Directive. Internal auditors must ensure that their organizations are not only compliant with these regulations but also proactively managing their environmental impact.
Human Capital, Diversity, Talent Management, and Retention
Human capital risks are increasingly challenging organizations as they struggle to attract, develop, and retain talent in a rapidly transforming digital landscape. The report points out that internal auditors should place greater emphasis on evaluating recruitment, retention, and talent management strategies to ensure they align with organizational objectives.
Macroeconomic and Geopolitical Uncertainty
The report underscores the persistent risks posed by geopolitical instability and macroeconomic uncertainty, especially in light of ongoing global conflicts and political shifts. Scenario planning and stress testing are crucial strategies that organizations should adopt to prepare for potential disruptions.
Author: Sebastian Burgemejster
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