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Cyber ​​security is the number one threat facing organizations in 2022, with climate change also a growing risk, research from the Chartered Institute of Internal Auditors (Chartered IIA) suggests.
This is the fourth year in a row that cybersecurity has been at the top of the annual ranking by the Chartered IIA, which is based on a survey of over 700 Chief Audit Officers (CAEs) across Europe.
Changes in laws and regulations are seen as the second biggest risk for next year, followed by digital disruptions, new technologies and artificial intelligence.
Climate change and environmental sustainability climbed four places to eighth in the rankings, placing it in the top 10 for the first time.
However, the researchers also found that 69% of internal audit executives still don’t see climate change as one of the top five risks, and only 12% of internal audit teams prioritize spending a lot. of time and effort to question.
The Chartered IIA said he was “alarmed at the gap between awareness and action” taken on this growing risk, and urged organizations to act now to avoid disruption in the future.
“The rapid and sweeping adaptation seen in the business landscape during the pandemic shows what businesses are capable of when the need arises,†said John Wood, Managing Director of Chartered IIA. “The time has come for a similar innovation in response to the growing risk posed by climate change.
“Businesses need to prepare for the risks of climate change now to avoid large-scale disruption in the years to come, and internal auditors need to play critical planning and oversight roles here. Those who do not put their lives in danger. “
How the CAEs ranked their top five risks for 2022 is shown below:
Although cybersecurity is at the top of the rankings again – not surprisingly given the increase in cybercrime over the past 18 months – the Chartered IIA said organizations should consider climate change as a problem. “permanent risk” and act to defend themselves against it now by:
- Ensure that climate change and sustainability are at the heart of the organization’s values, mission and strategic objectives
- Establish sustainability goals that align with the 17 United Nations Sustainable Development Goals
- Invest in projects that will ensure the sustainability of products and services
- Anticipate the physical and political risks linked to the climate that could jeopardize the future of an organization
- Reduce organizational greenhouse gas emissions and move away from harmful or unsustainable manufacturing processes or materials.
“At a minimum, companies should register and publish their activities related to climate risk and sustainability, using internationally recognized standards such as the Task Force on Climate-Related Financial Disclosures,†commented Mike Ashley, Chairman of the Board of Barclays audit.
“Basically we have to make sure that the top level sustainability announcements by companies are actually being followed, so I think there is work internal audit can do in this space to make sure that we score. not. “
Image credit: iStock
Graphic credit: Chartered IIA
Author: Chris Seekings
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