Of our many human foibles, complacency and denial rank among the most pervasive. Examples of evidence ignored and realities refuted abound in politics, business and on an individual level, often leading to unfortunate outcomes. The concept of risk offers a prime case in point. Despite the fact that risk permeates virtually every aspect of our personal and professional lives, calamity is often perceived as something that happens to the other guy, not to ourselves.

For businesses, this perception can be dangerous. In a time of intense competition, increased scrutiny and escalating threats, a broad perspective and lucid thinking about the true risks facing a company become more important than ever. Yet, in our experience, few enterprises openly consider the possibility and consequences of failure, of bad luck, or of catastrophic loss.

This situation provides an opening for the chief audit executive (CAE). In today’s environment, the CAE is in a unique postion to fight complacency and denial by enabling the enterprise to acknowledge, understand and address relevant risks and thereby seek to reduce costs. Learn more from the full report, attached below in PDF format: