Risk Trends in 2024 and Beyond

Thought leadership for Canadians, produced by Canadian thought leaders

The following risk trends are based on real-life risk assessments, monitoring, and mitigation strategies MNP Internal Audit Services has executed for clients across Canada. Most of these trends have already emerged and are showing signs of significant growth with a range of impacts based on industry, size, location, and risk preparedness of the organization.

Though it’s still necessary to ask questions about organizational resilience, risk prevention and preparedness are paramount and typically cost a fraction compared to reacting to risk when it occurs. This report identifies related risks, key questions and red flags to consider.

The critical insight this year is that risks are increasingly interrelated, with concurrent natural disasters, increased cybercrime, continuous digital transformation, and material global conflict all being predominant themes. Organizations can no longer ignore the value of proactive risk management and preparedness.

Think of these risk trends as a set of dominos; each one can trigger the occurrence of any of the other risks. As each domino falls, it magnifies the financial and operational risks to the organization, making it more vulnerable to yet further risk. As we move into the future, continuous monitoring will be instrumental in navigating and optimizing for a world of integrated risks.

Contents

1. Cyber Security | The dark web advantage: Can you beat the hackers at their own game?
   (4 min)
2. Artificial Intelligence | AI is everywhere: What are your opportunities and risks? (4 min)
3. Privacy and Data Governance | Are you confident your data is secure and used ethically?
   (4 min)
4. IT/OT Governance | Are you optimizing value from limited resources and budgets? (4 min)
5. Environmental, Social, and Governance (ESG) | Are you getting the balance right? (5 min)
6. IT Third-Party Risk Management | How well do you really know your third parties? (4 min)
7. Merger and Acquisition (M&A) Integration | Are you aware of the risks you are inheriting with your acquisition? (4 min)
8. Digital Transformation | Have you envisioned the opportunity and risks of the end state?
   (4 min)
9. Data Analytics and Continuous Monitoring | Do you feel competitors have better insights?
   (4 min)
10. Workforce Transformation & Organizational Readiness | Are you optimizing and sustaining value from critical resources? (4 min)
11. Insurance | Read the fine print: Do you really know the current costs and benefits of insurance? (4 min)
12. Economic and Financial Adversity | How has the economy impacted your business model?
    (4 min)
13. Business Resilience (Including Third Parties) | How do you respond when a crisis hits? (4 min)
14. Capital Projects and Operations | Are your projects being managed to mitigate the risk of budget overruns, extended timelines, and poor quality? (4 min)
15. Fraud and Corruption | How much has the cost of living increase impacted fraud risk?
    (4 min)