INSIGHTS AND ACTIONS – C-SUITE Executive management faces a myriad of risk management challenges complicatedbythe18-monthbattle againstCOVID-19ombu .Fr sinesscontiuyandcrisismanagementolng-termiplicationsontalentmanage ment and culture, the impacts of the pandemic will have long, lingering effects on risks and risk management.
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In the coming year, executive management should: BEEF UP ITS KNOWLEDGE OF ECONOMIC AND POLITICAL VOLATILITY. As noted earlier, this risk area could haveprofoundlong-termipactsthatcouldesh r apehowbusinessisdone.(See“Riskstopayattentiongoing forward–EconomicandPolitcalVolatilty”onpage12). BUILD AND PLAN TO MATURE PROCESSES AND CONTROLS AROUND ESG REPORTING. • Leverage internal audit’s understanding of enterprise risk management and proven risk frameworks to help build effective ESG internal controls. • Don’t wait for external auditors to give guidance or wait for regulators to establish rules. • Direct internal audit to provide assurance on the effectiveness of existing ESG controls, particularly as they relate to ESG reporting. PROACTIVELY EDUCATE BOARDS ON TALENT MANAGEMENT AND CULTURE. • Carefully implement and measure relevant talent management decisions, such as work arrangement preferences, and their effect on employee morale, productivity, and retention efforts. • Obtain internal audit’s input on return-to-workplace plans and related range of risks, including impact to culture.
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