The “Risk in Focus 2026” report published by the European Confederation of Institutes of Internal Auditing (ECIIA) focuses on pinpointing the key risks faced, within the European continent, as well as the main areas internal auditors focus the most time and effort on, providing a comprehensive industry analysis for risk levels and audit priorities. This report draws on insights from 879 Chief Audit Executives (CAEs), five roundtable events with 44 participants, and 10 one-to-one interviews to create a clear map of key challenges and organisational responses, alongside internal audit’s remit.
Based on these insights, five key risk areas have emerged as the hot topics for internal auditors in Europe in 2026. These areas reflect the most pressing challenges organisations face and the focus of internal audit’s assurance and advisory activities.
How can internal auditors help?
As organisations face rapidly evolving challenges in 2026, internal auditors play a critical role in helping boards and management respond effectively. Here’s how internal auditors can help by providing assurance, guidance, and insight to ensure key areas are properly assessed, managed, and monitored across the organisation:
- Macroeconomic, social, and geopolitical uncertainty
- Digital disruption, new technologies, and AI
- Cybersecurity and data security
- Human capital, diversity, talent management and retention
- Climate change, biodiversity, and environmental sustainability
Macroeconomic, social, and geopolitical uncertainty
Provide assurance that geopolitical and macroeconomic uncertainties are reflected in the organisation’s risk assessment, that mitigation plans are developed and tested, third-party risk management is effective, and business continuity and long-term resilience are adequate.
Assess whether broad risks are broken down into issues specifically relevant to the business’s objectives and strategy.
Evaluate whether board and management decisions consider all necessary inputs, are free from bias, and whether the board has diverse experience and training.
Support management in aligning innovation and commercial opportunities with risks, resources, and budgets, ensuring risks are understood and mitigated.
Digital disruption, new technologies, and AI
Provide assurance that all AI-related processes, including horizon scanning, governance, risk management, procurement, and assessment of AI outcomes, are effective, aligned with strategy, compliant, and interdisciplinary where relevant.
Assess whether the AI strategy is flexible enough to leverage fast-moving technical developments and avoid vendor lock-in.
Evaluate the maturity of AI literacy across the organisation, including the boardroom, and the business and cultural understanding of AI among technical teams.
Cybersecurity and data security
Provide assurance that cyber risk assessments, security processes (e.g. multi-factor authentication), backup restoration, and infrastructure security are effective and consider emerging threats, including geopolitical risks.
Assess whether the cyber defence strategy considers segmentation of sites or IT programmes to reduce the risk of corporate takeover by hackers.
Provide advisory support on emerging technologies, such as the transition to quantum cryptography, and keep the board informed of associated risks.
Human capital, diversity, talent management and retention
Provide assurance that emerging AI and HR strategies, career planning, and compliance with the EU Pay Directive are aligned with organisational objectives, processes are in place to keep them synchronised, and relevant data is accurate and complete.
Provide advisory support on governance systems for strategic HR planning, ensuring responsible individuals are clearly identified.
Assess whether the organisation understands AI’s impact on roles, potential loss of key knowledge and skills, and the effects of digital disruption on career progression and opportunities.
Assess the level of psychological safety and recommend improvements where behavioural and formal procedures are lacking.
Climate change, biodiversity, and environmental sustainability
Keep the board informed of regulatory changes and developments in supply chain circularity to support strategic decision-making.
Provide assurance that ESG data is reliable, the business model considers long-term sustainability, and processes around double materiality assessments are effective and reliable.
Assess the double materiality assessment process, challenging assumptions and data used and identify gaps and opportunities in supply chain circularity.
Empowering organizations for 2026
Through this targeted support, internal audit helps organisations navigate complex and interrelated risks, make informed decisions, and strengthen resilience, ensuring they are better prepared to respond to uncertainty and change in 2026.
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