2017

Much has been said and written about leadership and risk. From military and world leaders to business entrepreneurs, a common theme is that taking no risks leads to earning no rewards. As Facebook’s co-founder Mark Zuckerberg has observed, “The biggest risk is not taking any risk. … In a world that is changing really quickly, the only strategy that is guaranteed to fail is not taking risks.”

In the 21^st Century, the risk/reward dynamic takes on the added component of the harrowing speed at which risks can emerge, change, and impact. I have written often of the need for internal auditors to audit at the speed of risk, which is no easy task.…

Many of us are old enough to remember the iconic commercials run by the renowned investment advisors, E.F. Hutton. The premise of the advertisements was that, “When E.F. Hutton talks, people listen.” The phrase is easily applicable to the marketplace. When one’s customers talk, those who serve them had better listen. This includes internal auditors.

In my first blog post of the 2017, I shared five resolutions that will help internal auditors prepare for the future. I believe the top resolution on the list — be responsive to stakeholders (customers) — is of utmost importance and deserves more in-depth discussion.

Understanding the needs and desires of management and the board of directors should be the highest priority not just for chief audit executives but for every member of the internal audit staff.…

As has become my custom, I like to begin each New Year with a blog post laying out resolutions internal auditors should consider for the coming year. In past years, I have focused on specifics regarding anticipated regulatory changes, market and economic challenges, and occasionally I’ve weighed in on how the political landscape might influence what we do. In 2017, I believe we all need to take steps to prepare the profession for the long-term future.

Beyond the well-documented challenges of cyber threats, compliance risks, and shifting demands on talent, growing stakeholder interest in expanding internal audit’s role toward strategic advisory roles has put the profession in a potentially precarious position.…