Rethinking Internal Audit Through Risk-Based Planning

The Shifting Risk Landscape

Internal audit is at a crossroads. In a world defined by rapid disruption, auditors can no longer be seen as compliance checkers buried in spreadsheets. They must evolve into agile risk navigators who guide strategy and influence decisions. Boards and executives increasingly expect more than assurance; they want foresight. More than 60% of executives say emerging risks such as AI disruption, cybersecurity, and regulatory volatility are evolving faster than traditional risk management frameworks can adapt, underscoring the need for agility, cross-functional insight, and proactive risk leadership.

The balance is shifting. Assurance remains foundational, but advisory services are becoming essential. If risk plans are not updated in line with changes to the organization and its risk landscape (annually may not be enough), audit functions risk misalignment with organizational priorities and may miss the very threats shaping the future.

Emerging Risk Radar

Today’s risk environment is increasingly complex, cutting across strategic, operational, compliance, and emerging domains in ways that rarely fit neatly into traditional frameworks. The 2025 IIA Pulse Report emphasizes that cybersecurity continues to dominate the agenda, with 86% of North American organizations citing it as their top risk and nearly three-quarters of global respondents echoing the same concern. Digital disruption, particularly the rise of artificial intelligence, is close behind, identified by more than half of North American executives and nearly half worldwide as a critical threat.

Regulatory change and business resilience remain major pressures. Shifting rules and rising expectations test organizations’ ability to adapt. Globally, talent shortages and changing workforce demands add to the top risks. Leaders now expect internal audit teams not only to track these shifts but also to anticipate them, building agility into audit plans so teams can adjust as risks evolve. The challenge is balancing traditional assurance duties with the need to address new strategic threats that will shape the future.

Agile Auditing in Action

To meet this demand, internal audits must embrace agility as more than a methodology. It has to become a mindset. Agile auditing empowers teams to deliver timely insights, stay embedded in fast-moving business environments, and adapt as priorities shift. The 2025 IIA Pulse Report stresses the skills auditors will need most in the coming decade: adaptability and learning agility, strategic thinking and business acumen, strong communication, and fluency in information technology and cybersecurity.

These skills help auditors quickly learn new topics, see their impact on the business, and share insights that matter to senior leaders. Beyond technical know‑how, continuous learning and a global outlook will be vital, ensuring tomorrow’s audit leaders are not only risk-aware but are also positioned to shape organizational strategy.

The Future Role of Internal Audit

The internal audit function is evolving. In the past, the function was reactive, siloed, and focused mainly on compliance, often perceived as operating in isolation from the business. The future is proactive and collaborative. Audit teams are becoming a source of real-time insight, using analytics and technology to guide decisions and help organizations manage uncertainty.

This shift requires a clear roadmap. A proactive risk radar ensures that auditors are watching for emerging threats such as AI, cybersecurity, and supply chain vulnerabilities. Agile auditing embeds adaptability into the function, allowing teams to deliver value through collaboration. Ongoing learning keeps auditors ahead of business and technology changes, developing leaders who naturally think with a risk-aware mindset.

Cultivating Risk-Aware Leaders

Developing risk‑aware leaders takes experience beyond audit. Rotations through mergers and acquisitions (M&A), treasury, tax, and shared services give auditors a full view of how risks connect across the business. This exposure turns internal audit into a launchpad for talent, positioning the function as an ally in decision making. The outcome is a pipeline of leaders who spot vulnerabilities early, build resilience into everyday choices, and strengthen the organization from within.

From Oversight to Foresight

Internal audit is no longer about validating yesterday’s controls. It is about shaping tomorrow’s decisions. Risk becomes foresight, and an internal audit evolves into a strategic ally, guiding organizations through uncertainty, strengthening resilience, and driving sustainable growth.

Our Risk Solutions team helps organizations turn the internal audit into a source of strategic advantage. Drawing on deep experience and proven skill, we apply a risk-based planning approach, agile methodologies, and continuous learning to move auditors beyond reactive oversight and into proactive risk leadership.

Risk becomes foresight, and an internal audit evolves into a strategic ally, guiding organizations through uncertainty, strengthening resilience, and driving sustainable growth.