PwC's Global Internal Audit Study: video transcript

PwC's Global Internal Audit Study: Seeing through walls to find new horizons

The views of 4,680 board members and business executives, and Internal Audit (IA), Risk and Compliance Leaders from 81 countries.

Five themes focused on one thing: what matters to you:

(1) Succeeding in the new risk multiverse

Megatrends are creating risks in new areas that are more connected than ever before and unprecedented in scale and complexity.

This is disrupting all industries and forcing organisations to face a new reality. We call this the new risk multiverse.

PwC's 26th Annual Global CEO Survey found that nearly 40% of global CEOs do not think their organisations will be economically viable in ten years’ time if they continue with their current strategy.

IA is uniquely placed to illuminate the road ahead, navigate hazards and give organisations confidence to change direction.

(2) Staying relevant

56% of board members and business executive respondents said they want IA involved in management strategy and planning.

They are opening the door to IA to engage differently on risk.

This means tackling new areas that may be strategic to the business—but unfamiliar to IA— such as M&A, ESG and transformation.

IA needs the confidence to step forward, venture into new areas, and be willing to challenge the business—or risk becoming irrelevant.

(3) Becoming stronger together

First and second line have ‘levelled up’ their capabilities and response to risk.

But only half (52%) of IA functions show strong alignment on key risks and problems.

IA can become a unifying force—combining expertise to harness momentum and forge something stronger together.

(4) Harnessing your 'superpowers'

Technology has become exponentially more sophisticated, providing organisations with access to more data—and strategic opportunities—than ever before.

Professional scepticism, a risk and controls mindset, and objectivity remain IA's core superpowers, but only 19% of executive respondents believe strategic thinking is currently one of IA's strengths.

IA should continue to evolve its human capabilities so that it can turn data into decisions, build new relationships and help others to see risk differently.

(5) Getting a better return from technology

Only around 20% of IA functions in the study have achieved the desired benefits from their investments in technology over the last twelve months.

As new technology, like AI, brings a new wave of advancement, the window for IA to adapt is closing fast.

IA needs to recalibrate its approach and work with others to unlock this potential.

Leading the way

Our study highlighted a group of IA functions we called 'Pioneers'.

Those that stood out with their ability to challenge, tackle new areas, and embrace innovation.

The outcomes expected from Pioneers include new strategic business opportunities, greater success in transformation programmes, and greater resiliency and ability to predict or manage disruption.

But IA cannot do it alone.

Value can remain hidden behind walls if IA and the business are not willing to climb them together, look up, speak up, and see things differently.

We call this, seeing through walls to find new horizons.

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