Top 10 Risks for Latin America in 2026: A Guide for Internal Audit
A new report, "Risk in Focus 2026 – Latin America," highlights the top threats facing organizations in the region, according to over 860 internal audit leaders. Cybersecurity, digital disruption driven by AI, regulatory changes, and geopolitical instability are among the primary concerns. The study also reveals significant gaps between perceived risks and actual audit coverage, urging a more proactive and resilient approach from businesses. (Original source in Spanish)
Key Risks for Latin American Organizations in 2026
The "Risk in Focus 2026 – Latin America" report, based on insights from over 860 internal audit leaders, identifies the most pressing challenges for businesses in the region. Cybersecurity stands out as the number one threat, with 76% of internal auditors citing it as their top concern. The increasing sophistication of cyberattacks, fueled by artificial intelligence, demands robust defenses and incident response plans. Following closely is digital disruption and AI, which has seen a significant jump in concern, highlighting the need for proper governance and security protocols as organizations rapidly adopt AI solutions.
Navigating Regulatory Changes and Geopolitical Volatility
Regulatory change ranks as the third-highest risk, with 49% of respondents emphasizing the pressure on companies to adapt quickly to dynamic legislation across financial, environmental, and data privacy sectors. This necessitates agility and compliance with diverse standards across multiple countries. Geopolitical and macroeconomic uncertainty also poses a significant threat, impacting liquidity, supply chains, and operational continuity due to international tensions, trade policies, and authoritarian contexts within the region.
Human Capital, Resilience, and Financial Stability
Other critical risks include human capital, with a persistent shortage of talent in key areas like cybersecurity and data analytics, and business resilience, particularly in sectors like mining and energy, where the ability to respond to crises is paramount. Financial and liquidity risks remain a concern due to inflation and interest rate volatility, requiring strong liquidity control and scenario planning. Fraud, though ranked eighth overall, is a top-three priority for internal audit in Latin America, with digitalization creating new avenues for illicit activities. Organizational culture and climate change also feature on the list, underscoring the importance of ethical frameworks and environmental adaptation.
Bridging the Gap Between Risk Perception and Audit Coverage
A notable finding from the report is the significant disparity between perceived risks and the extent of audit coverage. For instance, while 54% view digital disruption as a risk, only 29% prioritize it in audit plans. Similarly, geopolitical uncertainty is a concern for 45%, but only 16% of audits address it. This highlights a critical need for internal audit functions to align their focus more closely with the evolving risk landscape, ensuring that critical threats receive adequate attention and proactive management. Organizations that invest in digital talent, robust AI governance, and enhanced resilience will be better positioned to navigate the complex environment of 2026 and beyond.
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