5.3 Geopolitics – the impact to your organization and internal audit functions
Geopolitical risks are ones that are associated with any sort of conflict or tension between states. Geopolitical risk is an increasingly important topic in the minds of financial services leaders. In a world of diversity and change, being mindful of how the geoopolitical landscape impacts an organization is critical and internal audit can help navigate that risk and support the organization. The global uncertainty that we are facing is creating rising focus on geopolitical risks in businesses. It is time for business to make the required strategic changes and shift their focus to mitigate geopolitical risk. Internal Audit can help!
We see the following key geopolitical risk drivers 1) increased volatility in previously stable regions 2) uncertainties that follow political change here in Canada and aboard 3) decline in committment to the international rule of law 4) climate change politics and 5) rising inequality.
Internal Auditors bring a diverse skillset and broadening that skillset to include a macro-environment viewpoint on the geopolitical risks and the impact it will have on an organization is another value-add opportunity. Bringing this topic as part of the audit agenda can only enhance the value of the internal audit function.