4 ways AI is transforming audit , risk and compliance

The AuditBoard Risk in Focus 2025 report highlights the significant risks posed by fast-moving trends in cloud, SaaS, and AI, which are disrupting businesses and compliance leaders. AI, in particular, is a concern due to its potential to create shadow IT, leading to data breaches and cyberattacks. However, AI and automation are also transforming audit, risk, and compliance workflows, enhancing efficiency and accuracy in managing these risks. AI enables real-time risk sharing, automates evidentiary data culling, and streamlines framework stress testing, allowing for more frequent and accurate assessments. This transformation frees up compliance teams to focus on strategic decision-making and proactive responses to evolving threats. The adoption of AI-powered risk management tools is growing, with 81% of enterprises using them. AI helps identify patterns and assess risks faster, reducing manual effort and improving risk management. It also aids in compliance with evolving regulations, such as the EU s AI Act and the U.S. Executive Order on AI. Risk trends like regulatory changes, third-party risk management, fraud detection, and data privacy and protection are driving the adoption of AI-powered compliance tools. AI can automate assessments of attack surface vulnerability management data, threat intelligence, and new regulations to determine exposure. AI and automation are also bridging the gap between cybersecurity practices and ESG, compliance, and risk management. They enable real-time risk assessments, streamlined compliance with complex regulations, and continuous tracking and reporting of key sustainability metrics. In summary, AI and automation are reshaping audit, risk, and compliance workflows, particularly in cybersecurity. They are transforming the way businesses manage risks, comply with regulations, and integrate cybersecurity, ESG, and compliance efforts. The AuditBoard Risk in Focus 2025 report emphasizes the importance of embracing these technologies to stay agile and accountable in today s complex risk landscape.

Source: scworld.com
Published on 2024-09-27