Gartner Survey Highlights Emerging Risks: AI, Geopolitics, and Data Integrity Top Concerns for ERM Leaders

Gartner's Latest Risk Insights: A New Landscape of Threats

A new Gartner Quarterly Emerging Risk Report, surveying 337 enterprise risk management (ERM) leaders, risk management professionals, auditors, and senior executives, has unveiled a fresh perspective on the top emerging risks. Unlike previous surveys that often highlighted perennial concerns, this report emphasizes the rapidly changing risk landscape, particularly with the rise of artificial intelligence. Internal audit professionals should pay close attention to these evolving threats, as they represent critical areas for assurance and advisory services.

The Dominance of AI-Related Risks

The survey's findings underscore the growing impact of AI across various risk categories. "Information integrity risk" emerged as the top concern, highlighting the danger of unreliable public datasets and AI-generated content leading to flawed decisions. This directly impacts data governance, a key area for internal audit. Following closely is "Agentic AI," which addresses the risk of AI systems making decisions misaligned with organizational policies, ethics, or legal requirements. This raises significant questions about AI oversight, control frameworks, and the need for robust ethical guidelines. Finally, the "AI workforce preparedness gap" points to the challenge organizations face in upskilling employees to effectively leverage AI, potentially leading to skill gaps and diminished returns on AI investments. Internal audit should consider the adequacy of training programs and the impact of AI adoption on human capital risk.

Beyond AI: Geopolitical and Financial Volatility

While AI dominates the top risks, the survey also identifies other significant emerging threats. "US-policy-induced investment uncertainty" reflects concerns about unpredictable policy shifts, such as trade actions and government shutdowns, and their potential to destabilize economies and investment strategies. This highlights the importance of geopolitical risk assessment and scenario planning. Additionally, "increased financial exposure" remains a consistent concern, driven by the rising frequency of natural and man-made disasters, cyberbreaches, and geopolitical conflicts. This risk extends beyond insurance premiums to encompass operational disruption, supply chain resilience, and business continuity. Internal audit should assess the effectiveness of risk mitigation strategies for these external factors and their potential financial and operational impacts.

Implications for Internal Audit and Risk Management

The insights from this Gartner survey provide a valuable roadmap for internal audit and risk management functions. The shift towards AI-centric risks necessitates a re-evaluation of existing audit plans and risk frameworks. Key areas for focus include:

• Data Governance and Quality: Auditing the integrity and reliability of data used by AI systems.
• AI Ethics and Controls: Assessing the governance, ethical guidelines, and control mechanisms for AI decision-making.
• Workforce Readiness: Evaluating the organization's preparedness for AI adoption, including training and skill development.
• Geopolitical and Macroeconomic Risk: Enhancing the assessment of external factors and their impact on business strategy and operations.
• Resilience and Business Continuity: Reviewing the adequacy of plans to address disruptions from various sources, including natural disasters and cyber incidents.

By proactively addressing these emerging risks, internal audit can provide critical assurance and advisory services, helping organizations navigate an increasingly complex and volatile environment.