Airmic and the Chartered Institute of Internal Auditors have released a new joint report, ‘Navigating geopolitical risk: Building resilience demands collaboration in a challenging world.’
Main themes from the report include:
- Organizations needs to be agile in responding to the challenges of ‘once-in-a-generation events’ occurring with regular frequency, and to be in a permanent state of readiness that recognises the nature of today’s crises.
- Scenario planning and horizon scanning are key to preparing for geopolitical risk. Organizations must resist the temptation to be events-led and retain agility for when crises may strike.
- Stereotypical profiles of risk and internal audit professionals need to be reviewed to ensure they meet future needs. They must work together and at the same pace. Professional education needs to balance soft and technical skills, equipping them to think the unthinkable on geopolitical scenarios and speak up.
Commenting on the report, Julia Graham, CEO, Airmic, said: “Geopolitical risk is becoming far higher in profile on the risk radar of most businesses and is a board agenda item – and one which demands a collaborative response from risk and internal audit professionals. Building resilience is imperative. Businesses need to be prepared to deal with significant disruption caused by geopolitical incidents.”