The Chartered Institute of Internal Auditors (CIIA) has highlighted AI as a rapidly rising risk for businesses.
- Businesses across the UK, Ireland, and Europe are changing their approach to risk due to technological advancements.
- AI is significantly impacting the risk landscape, necessitating adjustments in risk management strategies.
- The CIIA urges boards to utilise internal audit teams to evaluate cyber and digital controls.
- The ‘Risk in Focus 2025’ report stresses the growing importance of addressing AI-related risks proactively.
The Chartered Institute of Internal Auditors has identified artificial intelligence as a rapidly escalating risk in the business sector, urging companies to adapt their risk strategies accordingly. This recognition comes as part of the CIIA’s annual ‘Risk in Focus 2025’ report, signalling a transformative shift in how risks are perceived within the realms of business across the UK, Ireland, and Europe.
Technological advancements, particularly in AI, are reshaping the risk landscape at an unprecedented pace. Businesses are responding to these changes by revising their risk management practices to address these emerging technological threats. The rapid evolution in AI technology calls for a heightened level of vigilance.
The CIIA emphasises the importance of leveraging the expertise of internal audit teams to assess the effectiveness of existing cyber and digital controls. Such evaluations are crucial as businesses strive to fortify their defences against the multifaceted risks posed by AI advancements.
Boards and senior management are encouraged to take proactive measures as outlined by the CIIA, to ensure robust cyber and digital defences. This approach not only addresses present challenges but also prepares enterprises for future developments in AI technology.
The ‘Risk in Focus 2025’ report specifically underscores the importance of prioritising AI-related risks as a part of comprehensive risk management strategies. The CIIA’s call to action serves as a timely reminder of the need for constant evolution in business risk assessments.
The CIIA’s insights underline the critical necessity for businesses to evolve in response to AI-driven risk landscapes.
