Market volatility post ‘Brexit’ is a major concern expressed by Heads of Internal Audit (HIA) according to a recent survey by the Chartered Institute of Internal Auditors in the UK (CIIA UK).
The survey found that 69% of respondents cited a volatile market following the Brexit vote as the single risk of most concern to private sector organisations.
The survey was held in July 2016 with questions focusing on topics ranging from organisations contingency planning, aspects of Brexit-related risk and the role of internal audit.
The survey also found that in response to the Brexit vote most organisations are already preparing to operate in a non-EU member UK, 91% of respondents said they are in the process of making plans for a Brexit economic environment.
The survey also shows that 80% of organisations saw the vote to leave the EU having major risks to their organisation.
Although internal auditors expressed their concern for market volatility and a considerable number of businesses are making plans for Brexit due to a high risk associated with the vote to leave, the assessment of the risks involved in these plans have not been given precedence.
Only 42% of internal audit teams have been asked to evaluate how risks to their businesses’ Brexit plans are being managed, the survey revealed.
The survey also revealed that less than half of the respondents said they are engaged in providing advice and insight into risk and control issues relating to Brexit. Similarly less than half of the audit functions surveyed are providing or developing a plan to provide assurance on Brexit related risks.
Dr Ian Peters, chief executive of the CIIA UK believes the post-Brexit vote environment is still “very unclear” however he stressed the need for internal auditors to support organisations “to design and implement strategies to navigate Brexit risks.”
“Internal auditors will need to develop a concrete audit response to give boards the assurance they need.”
The result of the survey can be found here (https://www.iia.org.uk/resources/brexit-hub/brexit-survey-results/?utm_source=homepage&utm_medium=web&utm_campaign=brexit)