The Rising Tide of Cybersecurity Threats: Insights from the 12th Annual Global Technology Audit Risks Survey
In an era where technology is evolving at an unprecedented pace, the 12th Annual Global Technology Audit Risks Survey conducted by Protiviti and The Institute of Internal Auditors (IIA) has unveiled alarming insights into the cybersecurity landscape. As organizations increasingly integrate artificial intelligence (AI) into their operations, the perception of risk is shifting dramatically. The survey reveals that a staggering 68% of IT audit teams perceive high threat levels for cybersecurity over the next 12 months, underscoring the urgent need for robust risk management strategies.
The Impact of AI on Cybersecurity Risks
The rapid adoption of AI technologies is transforming industries, but it also brings with it a host of new challenges, particularly in cybersecurity and data privacy. According to the survey, 59% of IT audit leaders view AI as a significant threat in the medium term (two to three years). This growing concern is not unfounded; as AI systems become more sophisticated, they can also be exploited by malicious actors, leading to an increase in cyber threats.
The survey, which polled over 1,200 executives and professionals, including Chief Audit Executives (CAEs) and IT audit leaders, highlights the dual nature of AI’s impact on technology auditing. While AI tools are being integrated into auditing processes to enhance efficiency and effectiveness, they are also amplifying concerns about cybersecurity and data privacy. Notably, organizations utilizing AI in their audits report a higher perception of cybersecurity risks—76% of these organizations recognize significant threats compared to 65% of those not leveraging AI.
Cybersecurity: The Foremost Concern
For the second consecutive year, cybersecurity has emerged as the top technology risk, with 68% of respondents identifying it as a high-level threat. This statistic reflects a growing awareness among organizations about the vulnerabilities that accompany digital transformation. The integration of AI is not only surfacing new vulnerabilities but also providing deeper insights into existing risks, thereby driving a heightened sense of urgency to mitigate them.
The survey also highlights that data privacy and compliance concerns are prevalent, ranking as the second-largest perceived technology risk. Data governance and integrity follow closely behind, indicating that organizations are increasingly aware of the importance of safeguarding sensitive information. Alarmingly, 52% of auditors view data breaches and leaks of sensitive information as the most significant cybersecurity-related threats.
The Role of Internal Audit in Risk Management
As organizations navigate this complex risk landscape, internal audit functions are poised to play a critical role in identifying and mitigating cybersecurity threats. Angelo Poulikakos, global leader of Protiviti’s Technology Audit and Advisory practice, emphasizes the importance of adopting AI responsibly. He notes that internal audit departments must prioritize AI integration to stay ahead of emerging risks and opportunities. By advising on effective risk and control governance, internal auditors can help organizations harness the benefits of AI while minimizing potential downsides.
Regulatory Compliance and Data Privacy
The survey findings also underscore the growing importance of regulatory compliance in the context of cybersecurity. With the implementation of regulations such as the General Data Protection Regulation (GDPR) and the Securities and Exchange Commission’s (SEC) cybersecurity rules, organizations are under increasing pressure to enhance their data security measures. This regulatory landscape has contributed to a year-over-year increase in perceived threats related to data privacy and compliance, with 61% of CFOs and finance leaders rating data security and privacy as a high priority for the coming year.
Conclusion: Preparing for the Future
As organizations continue to embrace digital transformation and AI technologies, the landscape of technology risks will undoubtedly evolve. The 12th Annual Global Technology Audit Risks Survey serves as a wake-up call for organizations to reassess their risk management strategies in light of these emerging threats. With cybersecurity remaining a top concern, it is imperative for internal audit functions to take a proactive approach in identifying vulnerabilities and implementing robust controls.
The research report, "From AI to Cyber – Deconstructing a Complex Technology Risk Landscape," is available for complimentary download, providing further insights into the survey results and the implications for organizations navigating this complex risk environment. As we move forward, the collaboration between technology, internal audit, and risk management will be crucial in ensuring that organizations can confidently face the future while safeguarding their assets and data.
For more information and to access the full report, visit Protiviti’s website.