As businesses battle against economic turbulence, driven by stubbornly high inflation and an interest rate rise shock, the Chartered Institute of Internal Auditors is urging boards to work alongside their internal audit functions to build resilience against a possible recession.

That is the key message of Adapting to Economic Uncertainty: Internal Audit’s Journey, which provides guidance to internal audit and boards on navigating the multitude of risks associated with the economic downturn.

Some of the key findings from the report include:

• 56% of respondents perceive the risk level posed by economic uncertainty to their organisations as high to very high.
• The top risks most impacted by economic volatility were financial capital, cash flow, and liquidity risk (26%), along with changes in consumer demand and behaviours (22%).