A summary from across the web of 2022's Internal Audit Hot Topic's, Focus Area's and Risk Priorities.
We have searched across the web; through each of the Big 4's websites, through the IIA, and across thought leadership sites to find out what they all consider to be the top risk / focus areas for Internal Audit going into 2022.
Each year, these risk in focus / hot topics reports can prove to be an invaluable resource for many audit functions and show many upcoming or potential risks which Chief Audit Executives (CAE's) and Audit Committees should be considering. You can see what the 2021 hot topics were by reading this blog post, or you can view the 2020 hot topics were by reading this blog post.
In this post, we will show you what the IIA, PwC, Deloitte, Protiviti and Gartner all consider to be the main focus areas for 2022.
Here we go.
Institute of Internal Auditors
The Institute of Internal Auditors released their Risk in Focus 2022 report back in September this year. You can read our review of the report here. Following a survey amongst a number of Heads of Audit, the report identifies the following top 10 risk areas which are on people's minds going into 2022:
IT security: response and recovery
Rising sustainability regulations
Accelerated digitalisation and low-code adoption
Workforce fatigue and cultural erosion
Pandemic response: organisation and strategic resilience
Financial risk and the looming insolvency wave
Rising inflation and the global tax clampdown
Climate change and sustainability
Supply chain strains and the race to flexibility
Health and safety amid the continued COVID-19 threat
You can view the full Risk in Focus 2022 report here.
Deloitte
Deloitte has set out a list of planning priorities for Financial Services Internal Audit for 2022. Their website includes an interactive diagram which highlights both risk areas, but also improvement or focus areas specific to the internal audit team. The diagram is also a neat tool which could be presented to your audit committee and show which topics you have already covered (or plan to cover) through your audit work.
Deloitte has identified the following hot topics Internal Audit in Financial Services:
Regulatory
No Safe Havens' - Exchange of Information Compliance
Fraud Risk Management
Tax Governance & Control Frameworks
Ethical and Responsible Artificial Intelligence
Electronic & Algorithmic Trading
Operational Resilience
Financial Crime
IBOR Reform
Credit and Prudential Regulation
Changing Regulatory Landscape - Post Brexit Transition and Beyond
Resolution Planning and Resolvability
Recovery Planning
Stress Testing
Financial
ESG & Climate Risk
Liquidity Risk Management for Insurers
IRB Delivery Programmes
Future of UK Controls
IFRS 9 ECL Estimation
IFRS 17
Governance, Risk Management and Culture
Embedding SM&CR
Third Party Risk Management - Regulatory Requirements
Remuneration - Risk and Reward
Governance Culture
Conduct
End of Term Mortgages
Customer Outcomes Testing
Delegated Mandate Oversight
Product Governance
Consumer Value for Money
Vulnerable Customers
Consumer Affordability
Technology and Digital
Digital Risk
Cloud
Cyber Security
Internal Audit Innovation
Dynamic Risk Assessment
AC Reporting
1-Year From COVID-19 - Thrive: Return to Work
You can view the full Deloitte 2022 Hot Topics for Internal Audit in Financial Services report here.
PwC
PwC have taken a different approach with this years list, focusing on high level future risks for companies in the financial services sector.
At a high level, PwC have identified the following macro risks:
Conduct and Governance
ESG
Resilience through digitalisation
Workforce strategy
Prudential agenda
PwC have then focused on a few thematic micro risks:
Business resilience
Financial crime
Change risk
Technology risk
Conduct risk
Workforce risk
You can read the full 2022 Financial Services Horizon Scanning for Assurance Functions report here, and download specific financial services sector reports for more detail.
Protiviti
Protiviti have pulled together a range of Internal Audit, Risk, Business & Technology Consulting 2022 Regulatory Hot Topics considerations for Internal Audit.
The eight hot topics identified by Protiviti include:
Compliance Management Systems (CMS)
Product and Services
Financial Crimes
Debt Collection
Third-Party Risk Management (TPRM)
Environmental, Social and Corporate Governance (ESG)
Fair and Equitable Banking
Conduct Risk
You can read the full 2022 Internal Audit Hot Topic considerations report here.
Gartner
Gartner seems to reiterate and consolidate everything each of the above reports have called out as a specific focus area for 2021. Gartner's Hot Spot summary includes the following:
Ransomware
Data and Analytics Governance
Digital Business Transformation
IT Governance
Third Parties
Business Continuity and Organisational Resilience
Environmental, Social and Governance
Supply Chain
Strategy Execution
Workforce Management
Retention and Recruitment
Economic Uncertainty
You can view the full Gartner 2021 Audit Plan Hot Spots Report here. Please note, you do need to register to view this report.
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