Dancing with disruption: Have you mastered the steps?
In the past several years, Internal Audit groups in banking and securities (B&S) organizations have embarked on a remarkable journey in response to skyrocketing regulatory demands. Recently, they’ve been increasingly focused on helping their organizations respond to changes in internal behaviors, such as conduct and culture, information and communication technologies, and other disrupters. As a result, B&S Internal Audit groups are arguably far more advanced than many others, particularly those in the largest and most well-resourced institutions.
Understandably then, Internal Audit departments in other B&S institutions are still developing, or are in the process of transforming, their strategies to address multiple facets of the current environment. The notion of dancing with disruption—and mastering the steps of this dance—recognizes that disruption will continue to characterize the B&S industry. Internal Audit groups shouldn’t resist disruption. Rather, they should do what they can to stay a few beats ahead of it.
Deloitte sees four forces driving disruption in banking and securities organizations and their Internal Audit groups:
For an overview of these four forces, read Dancing with disruption: Have you mastered the steps?
Auditing the risks of disruptive technologies: Keeping the tempo
We’re in the midst of an exciting convergence. Technological advances and trends in advanced analytics, robotic process automation (RPA), and cognitive intelligence (CI) are rapidly reshaping business models, improving productivity, and enabling innovation in the way B&S organizations operate and conduct business.
This makes for an intricate pas de deux. As B&S companies continue to adopt emerging automation technologies, IA must proactively assess and gain insight into the new risks associated with these technologies. Doing so will enable IA to provide comfort to senior management that appropriate controls are being implemented to prevent and detect new and emerging risks.
Read Auditing the risks of disruptive technologies: Keep the tempo to take a closer look at the specific risk exposures associated with disruptive digitalization in banking and securities and how IA can prepare.