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Top Risk Areas of Internal Audit That Needs To Be Address in 2021

BusinessTop Risk Areas of Internal Audit That Needs To Be Address in 2021

Every business has to face new challenges and opportunities every year. The digital advancement in this digital world brings both opportunities and challenges. To emerge as a globally recognized organization, you need to deal with challenges and snatch the opportunities. In the same way, the role of an internal auditor is also upgraded. They have to efficiently manage the upgraded organization risk and effortlessly cooperate with the situation.

The current era brings digital transformation, enhancing opportunities, and uncertainties for several global organizations and banks. No matter which industry you are operating in, it is crucial to have internal auditors’ role in providing you with better risk management so that your organization becomes more advanced and receives exceptional outcomes. 

The increasing demand for technology enhances the scope of the internal auditor’s role, and they have to perform the auditing with a holistic approach to witness exceptional results. In 2021, the organization and internal auditor need to focus more on macroeconomic, strategic, and operational risks.

Here are Three Key Essential Areas to be Consider by Internal Auditor in 2021

Let’s look at some of the critical hazards which are essential to be considered by the internal auditor in 2021:

1) Digitalization and Internet of Things (IoT)

To increase business efficiency and operations, your organization must adopt the latest digitization and automation. With automation, machine learning investment, artificial intelligence, and other crucial investments enhance your business transformation. However, the more the benefits, the more challenges your business needs to face. With streamlining your overall business operation’s digitalization, your business needs to get advanced security for enhanced data protection. To operate the automation process, you require skilled and experienced personnel, which also looks like a challenge for your organization.

Here is how internal auditor can help in this matter?

An internal auditor plays a crucial role in managing your business operations efficiently. The Auditor will access the objectives and business plans for digitalization to outline the benefits for the organization. After understanding the whole digitization process, the Auditor will assess the business in implementing the appropriate governance and control frameworks to digitalize the business operation.

2) Cyber Security

Cybersecurity is an essential factor that it needs to focus on making your organization fulfill its goals. With several data breach cases appearing in front of us, cybersecurity is the main priority for every agendas and meeting in the corporate world. Breaching data doesn’t only involve the loss for your business but also causes reputational damage to your organization. Through effective cybersecurity, the organization can quickly secure its intellectual property and other critical information.

Here is how internal auditor can help in this matter?

By offering an in-depth risk assessment of the cybersecurity process, the internal auditor will help your organization maintain a robust cybersecurity process. The Auditor will also review the whole business activity and whether it has included all the critical threats to witness quality outcomes. By analyzing the cybersecurity models and third-party securities, the internal auditor will indicate the emerging cybersecurity risks.

3) Net Working capital management

Every organization’s financial capability is measured with Networking capital (NWC). The efficient management of NWC in any organization shows that it’s financial capability. Managing NWC effectively offers the organization to witness long term economic success and efficient capital investment. It provides vital benefits to the organization so that it can efficiently manage the finances of the organization.

Here is how internal auditor can help in this matter?

Reviewing the management process efficiently is the first role of an internal auditor. The Auditor should monitor the management, reporting, and efficiency of the NWC to get better outcomes. The internal auditor needs to focus mainly on the balance sheets and other accounts to ensure that the effectiveness of NWC is maintained. They also need to analyze the organization’s whole IT infrastructure process to determine the areas of improvement. 

The Auditor needs to check out the periodic information and other essential reporting to efficiently measure the NWC process.

Wrapping Up

Keeping your organization safe and secure is the first and foremost motive of any organization in 2021. Whether it be cybersecurity, risk management, crisis management, the internal auditor will efficiently manage the overall organizational operation. We hope that the above points will help you understand the organization’s top risks areas in 2021 and how an internal auditor will help you keep your organization safe and secure with this risk. So, whether you want to manage the operations efficiently or need better digitalization security, an internal auditor plays an essential part in serving your organization with all the benefits.

Are you looking for a trusted Internal Auditor for your organization to get better privacy and security? If yes, then Accume Partners is here to provide you professional internal auditors who will help you manage uncertainty and business value.

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