New! Risk in Focus 2022
Risk in Focus is an annual report analysing the top business risks which organisations across Europe are facing.
9 IN 10 ORGANISATIONS ARE NOT SPENDING MAJOR TIME AND EFFORT PREPARING FOR “EXISTENTIAL RISK” OF CLIMATE CHANGE
- The latest Risk in Focus report shows that around 9 in 10 organisations are not committing major time and effort to preparing for the rising risk of climate change, and is calling on business to act now to avoid disruption in the future
- Report shows an increase of 41% in Chief Audit Executives seeing climate change as a top-five risk when compared to last year – but only around one in 10 (12%) are spending significant time and effort preparing for this threat now
- New report identifies leading risks to business in 2022 as: cybersecurity and data security, change in laws and regulations, and digital disruption and AI.
Other key findings from Risk in Focus 2022 include:
Cybersecurity topped the list of risks for the fourth year running, with a majority (82%) of those surveyed placing it amongst their top five risks. This coincides with a material increase in cybercrime over the past 18 months, as criminals have sought to exploit the security weaknesses exposed by operational disruptions during the pandemic.
Changes in laws and regulations is among the top five risks for almost half (46%) of CAEs this year, although fewer than one in ten (8%) say it is their number one risk.
Digital disruption, new technology and AI remains a priority for CAEs, with close to half (45%) identifying it as one of their top five risks.
Almost half (40%) of CAEs listed human capital, diversity, and talent management as a top five risk, a knock-on impact of the workplace disruption caused by the ongoing pandemic, including changes to working patterns and expectations of what work means.
A third (33%) of CAEs view financial, liquidity and insolvency risk as among their top five risks, a significant fall on the 42% who said the same a year ago.
Almost a third (32%) of CAEs say that macroeconomic and geopolitical uncertainty is among their top five risks, while one in ten (10%) say it is their top risk. Current geopolitical instability could see this risk rise yet further up CAEs agenda by 2023.
Last, but by no means least, a third (30%) of CAEs have said that supply chains, outsourcing and ‘nth’ party risk is in their top five risk. With the pandemic, Brexit and the rising cost of importing from China continuing to cause supply chain challenges, this is another risk area that could potentially rise further up the list of business risks in the near future.
About Risk in Focus
- The Chartered IIA has run its Risk in Focus research project for the last five years to help Chief Audit Executives understand how their peers view today’s risk landscape and assist in developing their forthcoming audit plans.
- Risk in Focus 2022 research was conducted in March and April of 2021. Data was collected through a quantitative survey among CAE members of 12 Institutes of Internal Auditors in Austria, Belgium, France, Germany, Greece, Italy, Luxembourg, the Netherlands, Spain, Sweden, Switzerland and the UK & Ireland. The survey elicited 738 responses.
- Further insight was gathered through 50 interviews with a sample of 35 Chief Audit Executives, 12 Audit Committee Chairs, and 3 CEOs from across the above listed countries.