“Some internal audit leaders are considering how recent events may drive greater interest in modernization. As CAEs step up in many financial services organizations to add value during periods of rapid change, they likely will continue to increase their interaction with C-suite leaders and play a more significant role in crisis management going forward. Senior executives and audit committees in many organizations have been calling on CAEs to anticipate risk and provide more advisory support to business strategy. Newer digital technology might reduce reliance on manual, paper-based processes that proved challenging to adapt rapidly, allowing for more automation and continual monitoring going forward. Some internal audit leaders are also considering how recent events may drive greater interest in modernization. It also has meant giving business teams, whose work has been disrupted by recent change, an opportunity to adapt to new working conditions before proceeding with planned audit activity. In some cases, that has meant pivoting testing and reporting to focus on emerging risk areas. Internal auditors are also adapting their audit plans in many banking organizations to respond to the significant changes that have occurred. At many organizations, internal auditors observed the implementation of application processes to identify risks that could be considered and addressed before application portals opened. This has enabled internal audit teams to provide more timely insights that can facilitate risk mitigation on a more proactive basis.Īs an example, financial institutions rapidly developed and established systems and processes to facilitate loan applications under the Paycheck Protection Program of the CARES Act. Many CAEs have partnered with business operations to assess risks in real time, observing implementations and internal control modifications as they occur. Internal auditors in many settings have been providing advice to business leaders to raise awareness of credit risk and fraud prevention as banks have continued offering critical services to customers through increased digital channels. Rapid transitions to remote work and increased leveraging of digital technology converged with an onslaught of customer demand for credit-related services, introducing new risks for financial institutions to consider.