This week

elementalaimatters.substack.com · Jul 15, 2026 · Curated 6 days ago

Silent AI: The Hidden Threat Turning Governance Washing into Board Liability

This article highlights the critical risk of "Silent AI" – AI-driven issues that manifest as familiar business problems, thereby masking their AI origin and exposing boards to significant liability. Internal audit and assurance professionals must recognize that mere policy existence is insufficient; true governance requires demonstrable evidence of AI risk mitigation to prevent "governance washing" from becoming a costly oversight failure.

News & Blogs · Global Read more

normanmarks.wordpress.com · Jul 20, 2026

Beyond Top Risks: Why Poor Decision-Making is the Ultimate Threat to Organizational Success

This article challenges the conventional wisdom of 'top risk' lists, arguing that while risks like cyber incidents and economic uncertainty are important, the root cause of organizational failure is almost always poor decision-making. For internal audit and assurance professionals, this reframes the focus from merely identifying external threats to critically evaluating and auditing the internal processes by which decisions are made across all levels of an organization.

News & Blogs · Global Read more

elementalaimatters.substack.com · Jul 20, 2026

The Black Box in the Boardroom: AI's Opaque Decisions and the Looming Governance Crisis

The MeetingTV v. Koi Security lawsuit highlights a critical emerging risk for internal audit and assurance professionals: the inability to reconstruct decisions made by AI-driven systems. This case underscores the urgent need for organizations to establish robust audit trails and clear accountability frameworks for AI-assisted processes, as the absence of such controls can lead to significant legal, reputational, and financial liabilities, even for acquired entities.

News & Blogs · Global Read more

richardchambers.com · Jul 20, 2026

The Inconvenient Risk of a Toxic CEO: A Critical Challenge for Corporate Governance and Internal Audit

This article highlights the often-overlooked yet significant enterprise risk posed by a toxic CEO. For internal audit and assurance professionals, understanding how these leaders gain and maintain power, the damage they inflict on culture and controls, and the critical role internal audit plays in addressing this risk is paramount. It emphasizes the need for robust documentation, direct audit committee reporting, and unwavering independence to safeguard organizational integrity.

News & Blogs · Global Read more

Earlier this month

lsvp.com · Curated 1 week ago

Lightspeed Invests $37M in Andera to Automate Internal Audit with AI

Lightspeed Venture Partners has led a $37 million Series A investment in Andera, a company developing an AI-native platform to automate internal audit processes. This investment reflects Lightspeed's belief that audit is a critical area ripe for AI-driven transformation, addressing the manual, time-consuming nature of current audit practices and the increasing demand for efficiency in back-office functions. Andera's platform aims to free auditors from repetitive tasks, allowing them to focus on higher-value strategic analysis and risk management.

News & Blogs · North America Read more

zhaomichelle.substack.com · Jul 19, 2026

AI Model Drift: The Silent Threat to Operational Integrity and Audit Vigilance

AI models, unlike traditional software, are susceptible to 'drift'—a silent degradation of accuracy over time due to changing real-world conditions, even when the underlying code remains untouched. This phenomenon poses significant risks, as models can continue to operate without error messages while generating increasingly incorrect outputs, leading to substantial financial losses and flawed decision-making. Internal audit professionals must recognize that a running AI system is not necessarily a 'right' AI system, necessitating a shift in audit focus from mere operational uptime to continuous monitoring of decision quality and the implementation of robust response mechanisms.

News & Blogs · Global Read more

huggingface.co · Curated 1 week ago

Hugging Face Discloses AI-Driven Security Incident and Response

Hugging Face recently disclosed a security incident where an autonomous AI agent system intruded into their production infrastructure. The attack exploited vulnerabilities in their data-processing pipeline, leading to unauthorized access to internal datasets and credentials. Hugging Face successfully contained the breach, revoked compromised credentials, and enhanced their security protocols, notably using their own AI for detection and forensic analysis.

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zhaomichelle.substack.com · Jul 15, 2026 · Curated 1 week ago

Navigating AI Deployment: Technical Risks and Audit Considerations for Live Systems

This article highlights critical technical risks that emerge when AI models transition from controlled development to real-world deployment. For internal audit and assurance professionals, understanding these risks—such as training-serving skew, lack of human oversight, unchecked generative AI outputs, and adversarial inputs—is crucial for evaluating the robustness of AI systems and ensuring organizational accountability. The Air Canada chatbot case serves as a stark reminder that organizations are fully responsible for their AI's actions, underscoring the need for robust controls and clear accountability frameworks in AI deployment.

News & Blogs · Global Read more

zhaomichelle.substack.com · Jul 16, 2026 · Curated 1 week ago

AI Deployment: The Critical Gap in Governance – Why Existing Controls Are Being Bypassed

This article highlights a critical oversight in AI deployment: the frequent bypass of established IT governance frameworks. Internal auditors must recognize that AI models, despite their advanced nature, are still production changes requiring the same rigorous change management, authorization, and ownership protocols as any other software. Failure to apply these existing controls creates significant, avoidable risks, as demonstrated by real-world incidents where AI systems operated without proper oversight or accountability.

News & Blogs · Global Read more

kunal-grc.notion.site · Curated 1 week ago

Fable 5 GRC: A Comprehensive Overview

This article provides an overview of Fable 5 GRC, a platform designed to integrate governance, risk, and compliance functions. It highlights the platform's features and its potential benefits for organizations seeking to streamline their GRC processes.

Tools & Technology · Global Read more