Challenges and priorities for audit committees 

Issues include:  

• Governance processes, controls and risk management processes are maturing in organisations as they take a new focus on risk attestation and undertake short and long- term scenario planning and ensuring the organisation is ready for any crisis.
• Data privacy and security risk continue to be an area of focus. On the flipside, more organisations are capitalising on the value of their data and using social media to engage with customers.
• Constant economic, political and social uncertainty and volatility is almost becoming a ‘norm’ as organisations seek to be more nimble and adaptable in response to changing external factors.
• Compliance and regulatory requirements are increasing. Smart organisations are using the compulsory nature of compliance to drive organisational change.
• The strength of any risk management process is intrinsically linked to the culture surrounding it. We often see excellent risk management approaches and structures, but this is not always matched with risk aware leadership. Unless there is a tone from the top that drives an appropriate risk mindset, then those risk processes will not provide the greatest value (and protection) to the organisation.
• Although outsourcing can provide financial savings, innovative approaches and better quality services, a risk-based approach to these external relationships is essential, as are robust contract design and ongoing oversight. When ‘things go wrong’ the line blurs between the contractor and the organisation in the minds of the market and the public.