OnRisk: The Top Twelve Risks for 2022

The Institute for Internal Auditors (IIA) published its third annual OnRisk report: OnRisk – A Guide to Understanding, Aligning, and Optimizing Risk, which identifies and defines key risks, as perceived by boards, management, and chief audit executives.

An insightful overview of twelve key risks that are likely to be universally critical to organizations in 2022, the report discusses how the three key players in an organization’s risk management align (or misalign) in their view of these risks. It offers a detailed look at the greatest challenges expected in 2022 and how aligning risk management can increase success.

The results presented in the report were compiled through surveys and interviews with board members, c-suite executives, and chief auditors. The data highlights that while these stakeholders recognize and understand how these key risks are aligned, their perspectives on the significance of each risk are not. For example, looking at the top risk, Cybersecurity, is the report found that while 87 percent of respondents identified cybersecurity as a high risk to their organization, but only 31 percent had personal knowledge of the risk — a 56% point gap between the relevance of the risk and the respondent’s personal knowledge of it.

The report identified the following as the top twelve risks for 2022:

1. Cybersecurity
2. Talent Management
3. Organizational Governance
4. Data Privacy
5. Culture
6. Economic and Political Volatility
7. Change in Regulatory Environment
8. Supplier and Vendor Management
9. Disruptive Innovation
10. Social Sustainability
11. Supply Chain Disruption
12. Environmental Sustainability

Of course, the identification and assessment of risk is just one part of the story.  Effective risk management requires ongoing evaluation of the appropriateness and effectiveness of risk monitoring and mitigation activities.

For assistance in identifying, evaluating, and designing effective risk management activities in your organization, contact us. We would welcome the opportunity to speak with you!

© 2021