LAKE MARY, Fla., Sept. 15, 2026 /PRNewswire/ — Organizations continue to navigate a rapidly shifting and increasingly interconnected risk landscape, as digital disruption and geopolitical uncertainty recorded the largest increases in risk since last year, according to the Internal Audit Foundation’s latest annual Risk in Focus research.

The research, informed by feedback from more than 3,000 internal audit practitioners across 132 countries, found that risk ratings for digital disruption, including artificial intelligence (AI), and geopolitical uncertainty each rose 10 percentage points globally – to 58% and 48% respectively. Digital disruption increased in every region around the world, with North America reflecting the highest level at 69%. Meanwhile, cybersecurity remains the number one global risk, rising seven percentage points to 80% from last year.

Importantly, the research underscores the increasingly interconnected nature of organizational risk; digital disruption continues to influence areas beyond cybersecurity, including supply chain and third-party risk management, fraud, human capital, regulatory obligations, and market competition. The findings suggest organizations are increasingly confronting risks that do not remain confined to a single function or category. Technological disruption, geopolitical events, or cyber incidents can quickly drive consequences across operations, liquidity, supply chains, workforce, regulatory exposure and business resilience.

“Risk in Focus provides an important benchmark for organizations and internal audit leaders to understand how rapidly the risk landscape is changing and where governance and organizational preparedness must evolve,” said Anthony Pugliese, CIA, CPA, CGMA, CITP, President and CEO of The Institute of Internal Auditors. “The global risk environment continues to be reshaped by the convergence of technology, geopolitical uncertainty, fraud, workforce trends, supply chain pressures, and other emerging challenges. The challenge for organizations is no longer simply identifying individual risks, but understanding how they intersect, how quickly their impact can spread across the enterprise, and whether governance, internal audit and decision-making are keeping pace.”

Rising Risks Reveal Gaps in Organizational Preparedness

The findings also show that organizations are responding unevenly as the risk landscape continues to evolve. Cybersecurity, the highest-rated global risk, shows the closest alignment in risk perception and organizational and audit attention, with 75% of global respondents identifying it as a top 5 area for audit time and effort – up 6 percentage points from last year.

Digital disruption is also receiving greater attention as AI and emerging technology become further embedded across organizations. Digital disruption saw the largest increase of any area for audit priority, rising 10 percentage points to 42%, reflecting that audit leaders continue to redirect resources toward emerging risks. Even with that increase, however, its risk rating (58%) remains notably higher, underscoring the need for organizations to adapt their skills, governance structures and evaluation criteria to more effectively keep pace.

One of the clearest examples of this challenge is geopolitical and macroeconomic uncertainty. While 48% of global respondents rank it among their organization’s top 5 risks, only 13% identify it as a top 5 audit priority. The contrast is particularly notable in North America, where geopolitical uncertainty remains at a top 5 risk for 43% of respondents but a top audit priority for only 6%. While direct auditing of geopolitical risks is relatively low, political risk is likely addressed through engagements for supply chain, financial/liquidity health, business resilience, regulatory compliance, market changes, and more.

At the same time, more traditional audit areas continue to command significant organizational attention and audit resources. For example, financial/liquidity risk is a top 5 audit priority for 49% of respondents, though a Top 5 risk for 34%.

Aligning Fast-Moving Risks with Governance Maturity and Audit Coverage

For the first time, this year’s Risk in Focus survey asked respondents to assess risk governance maturity and the adequacy of internal audit coverage – revealing that some of the fastest-changing risks are also among the least mature areas with less audit coverage.

Digital disruption ranked among the lowest for both measures – just 23% of respondents rated its risk governance as managed or optimized, while only 11% reported full audit coverage. Geopolitical uncertainty also ranked low, with 29% reporting mature governance and just 10% reporting full audit coverage. Cybersecurity shows a similar, though less pronounced, preparedness gap, reporting 45% maturity and 33% coverage. By comparison, financial/liquidity risk – a more established risk area – reported 62% governance maturity and 47% full audit coverage.

Looking ahead, the research points to several strategies organizations, boards and internal audit leaders can consider to strengthen preparedness. These include giving boards a clearer view of how risk levels compare with governance maturity and assurance coverage; using scenario planning, readiness reviews and other forward-looking assessments for rapidly changing risks; coordinating with other assurance providers; and transparently communicating material assurance gaps, capability constraints and accepted risks.

About Risk in Focus

Survey responses were received from 3,285 chief audit executives and directors representing 132 countries and locations. The Internal Audit Foundation hosted the survey online from March 24 to May 6, 2026, for all regions except Europe. The survey for Europe was conducted by the European Institutes Research Group from March 2 to April 7, 2026.

About the Internal Audit Foundation

The Internal Audit Foundation is the preeminent global resource, in strategic partnership with The IIA, dedicated to elevating and empowering the internal audit profession by developing cutting-edge research and programs. The Foundation helps current and future internal auditors stay relevant by building and enhancing their skills and knowledge, ensuring organizations are equipped to create, protect, and sustain long-term value. For more information, visit theiia.org/Foundation.

About The Institute of Internal Auditors

The Institute of Internal Auditors (The IIA) is an international professional association that serves more than 265,000 global members and has awarded more than 220,000 Certified Internal Auditor (CIA) certifications worldwide. Established in 1941, The IIA is recognized throughout the world as the internal audit profession’s leader in standards, certifications, education, research, and technical guidance. For more information, visit theiia.org.

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SOURCE The Institute of Internal Auditors