A PwC internal audit survey shows that many IA teams aren’t addressing the threats CEOs deem most urgent. Closing that gap is key to building trust.
Navigating an increasingly complex risk landscape is a key function of internal audit (IA) teams, but are IA plans adequately addressing the risks that management feels most exposed to? The findings from PwC’s 2023 Global Internal Audit Study, which surveyed more than 4,600 business leaders in 81 countries, suggests there’s progress to be made. CEOs polled in a separate PwC survey said that they consider macroeconomic volatility and inflation the top threats to their company, for both the near and the medium term. Yet only 48% of respondents in the IA survey said their company’s IA plan has addressed those risks. This suggests a significant misalignment—but also a significant opportunity.
How can organisations address this? They should start by having better risk conversations between the first, second and third line to help break down barriers and find new opportunities together. The study points to several concrete steps for IA to take a lead role in doing this:
With improved engagement, and a willingness to see risk differently, organisations can unlock the potential of IA, and better focus on the specific things companies can do—from alternative sourcing programs and pricing adjustments to macroeconomic risk assessments and supply chain resiliency plans—to address the threats that today’s CEOs are most concerned about.
Shaun Willcocks
Partner, Global Risk Markets Leader, Global Internal Audit Leader, PwC Japan
Tel: +81 (0)90 6478 6991
Jiří Moser
Country Managing Partner and CEE Advisory leader, PwC Czech Republic
Tel: +420 251 152 048
Azamat Konratbayev
Managing Partner, PwC Eurasia Assurance Leader, PwC Kazakhstan
Tel: +7 727 330 3200
Mekong Territory Senior Partner and CEO for PwC Thailand, PwC Thailand
Tel: +66 (0) 2844 1000
Shirley Machaba
Regional Senior Partner, PwC South Market Area, PwC South Africa
Tel: +27 (0) 11 797 5851