Risk Assessment Priorities for 2019
With January here businesses have started putting together an annual internal audit plan to handle their risk assessment. This process is daunting and exhausting for anyone, and most people are sure by the end that they’ve touched upon every priority that is appropriate for their organization. However, there are some priorities that many people want to address in the year ahead that others are not aware of. At the end of the day, risk is what determines a company’s audit plans as well as determines whether or not a business will succeed. Understanding the risks an organization faces is critical to adding value to an audit plan. Going to an expert known as a certified internal auditor may be the best place to get advice. In the Cutler Bay area, Joyce CPA, LLC could be an excellent option for all your needs.
Risk Assessment Priorities
Typically a company will look at their reports from the year before to try to get an idea about what risks they may be facing in the coming year. The challenge here is to identify the emerging threats that may come up in the new year to guard the organization against them.
According to recent reports, the number one priority risk of 2019 is cybersecurity. This has been an ongoing threat to organizations for years, but the challenge of how to protect a business is becoming increasingly more difficult. The topic of cybersecurity has gotten more sophisticated which means the methods taken to ensure safety have to mature. Due to the increased demand of cybersecurity businesses have learned valuable lessons about how technology and data are forever intertwined.
According to a certified internal auditor, the top four priorities can be linked back to cybersecurity. They are cybersecurity preparedness, data privacy, data governance, and third-party risk. Companies that made cybersecurity preparedness risk a top priority saw growth between 60-68 percent from 2016 to 2018. Others that concentrated on data grew from 39-53 percent. Although the businesses that focused on third-party relationships showed the smallest amount of growth, they still made a substantial amount. The reason there was a smaller amount of growth with third-party relationships is because they are growing more complex as data sharing and weak oversight threaten to leave organizations exposed to an endless amount of harm.
In 2018, organizations witnessed the significant impact that the #MeToo movement had in regards to sexual harassment and inequality in the workplace. Although these topics were always considered risk categories, the explosion of allegations against high profile people and companies made many executives stop and reassess their companies procedures in dealing with these types of risks. Evaluating the role of social media was an aspect that had been overlooked for years. However, with its growing popularity and versatility, this can no longer be the case. Once again, this is another example of how technology is influencing the way companies view and deal with risks.
Although these risks aren’t applicable to all organizations, it is wise to make sure they are still brought up in conversation while your company is preparing their internal audit plans for 2019.
Joyce CPA LLC is located in the Cutler Bay, FL area and specializes in assisting small to mid-sized companies with a high-quality company audit, review, compilation, and tax services. It is our job to help our clients understand the proper way to create a risk assessment plan. Call or visit us today to speak with a certified internal auditor.