7 Virtual Brochure – March 2025 Key risk trends Our analysis at Table 1 below looks at how the collective views of Chief Audit Executives (CAEs) on their top five strategic risks have changed, or may change, over time. At a very high level, this describes a broadly similar risk landscape to last year. Across multiple business sectors and organisations there are consistent views about the most significant strategic risks, and the relative ranking of these is largely unchanged. The notable exception are risks attributable to digital disruption, new technology and especially AI which show the largest increase in ranking this year, and which are expected to increase substantially over the next three years. Risk Area 2025 (% rating risk as top 5) 2024 (% rating risk as top 5) 2023 (% rating risk as top 5) Diff 24-25 3 year trend (22-24) Likely priority in 2027 1 Cybersecurity and data security 83% 84% 82% -1 ppt 2 Human capital, diversity, and talent management 52% 58% 50% -6 ppt 3 Changes in laws and regulations 46% 43% 44% +3 ppt 4 Digital disruption, new technology, and AI 40% 33% 38% +7 ppt 5 Macroeconomic and geopolitical uncertainty 39% 43% 46% -4 ppt 6 Climate change and environmental sustainability 33% 31% 38% +2 ppt 7 Business continuity, crisis management, disaster response 33% 35% 36% -2 ppt 8 Market changes, competition and changing consumer behaviour 32% 30% – +2 ppt 9 Supply chain, outsourcing, “nth” party risk 28% 30% -34% -2 ppt 10 Financial, liquidity and insolvency risks 27% 26% 28% +1 ppt
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