New report highlights need for contingency planning
CEB recently released its annual report on internal audit hot spots, a report that was prepared before hurricane Sandy hit.
The goal is "to spotlight new trends in emerging risk areas that Internal Audit departments will focus on during the next 6 to 12 months. In particular, this report can help chief auditors act as a more effective risk-sensing arm for the company, highlighting emerging issues for audit committees and senior management. Also, the detailed risk analysis and implementation guidance in this report can help chief auditors modify or update their audit plans. In addition to addressing well-known risks, the report attempts to highlight the drivers of those risks that have changed or will change, warranting a different audit approach moving forward."
And guess what tops the list? The report says "recent disruptive environmental, political and macroeconomic events have put firms on high alert about the risk of catastrophic and systemic disasters, but not all companies are equally prepared to respond to the next crisis."
Sandy certainly reinforces what people across the industry agree has to be a top priority for next year. The best mindset would be to assume that another Black Swan is coming. Here's the full list:
1. Contingency Planning
2. Strategy Creation and Execution
3. Corruption and Bribery
4. Tax Management
5. Basic Operating Controls
6. Project Management
7. Third Party Relationships
8. Talent Management
9. Tone at The Middle
10. Reputation Risk
- here's the report
Did Wall Street pass the continuity test?