GartnerLegal says cyberthreats and IT governance are top concerns for audit in 2023. Read the press release here: Gartner_inc
Three key themes drove the risks this year including a “renationalization of resources” and a “triple squeeze” of growing cost pressures, supply chain risks and labor scarcity. The final theme, the need to “rethink organizational resilience,” is unique as its own distinct risk area and a driver of a multitude of other risks.
The ability to withstand crises and disruptions may become more critical next year, and many organizations still take a limited view of resilience, mostly focused on business continuity and IT disaster recovery. This narrow view of resilience fails to account for additional risks impacting resilience including greatly increased economic volatility and impacts from climate degradation.
“Rethinking resilience is a key theme that underlies a diverse set of risks facing organizations in 2023, including economic volatility, climate degradation and third-party risk management,” said McKnight. “Currently less than one third of audit leaders are highly confident in their team’s ability to provide assurance over organizational resilience risk, and more concerning, less than half plan to cover organizational resilience in audit activities in the coming year.
McKnight further noted that the increasingly interconnected risk landscape increases the chances for cascading risks, where one risk causes additional risks to manifest for an organization, a scenario that few organizations are actively planning against today.
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