Governance in a risk era defined by geopolitical uncertainty

One of the most rewarding aspects of my role as President and CEO of The Institute of Internal Auditors is the opportunity to engage with practitioners around the world. Hearing directly from those on the front lines of the profession is fundamental to how we operate as a global association and is critical to our ability to remain agile in how we support and guide practitioners. 

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Over the past year, one theme dominated those conversations. Around the world, audit, risk and accounting teams are grappling with rising geopolitical and macroeconomic uncertainty — how to monitor, track and proactively manage risk levels when the global landscape seems to shift daily. 

This growing uncertainty isn’t merely anecdotal; it’s firmly rooted in research. In the IIA’s 2026 Risk in Focus survey, geopolitical uncertainty risk rankings in North America jumped from 26% to 45% compared to last year, marking the largest risk level increase across all areas, including cybersecurity, digital disruption and regulatory change. 

The Risk in Focus findings also highlight how audit professionals are increasingly leaning on cross-functional collaboration to address geopolitical risk. Internal auditors recognize that geopolitical uncertainty, such as unpredictability in trade policy, or regional instability, is vast and nuanced. It impacts multiple risk domains such as regulatory compliance, market performance and trade operations. As a result, close collaboration and consistent communication between internal audit, accounting, risk management and financial operations have become both an organizational priority and a resilience imperative. The era of siloed departments is over.

Financial liquidity as an audit priority

The Risk in Focus research also benchmarks how audit functions are responding and adapting in today’s changing risk environment. 

This year, financial and liquidity risks emerged as a top five audit priority alongside business resilience, cybersecurity, corporate reporting and regulatory change. This is significant and relevant for management, accounting and finance professionals as it reflects just how important an organization’s financial operations and financial security are within an increasingly complex and diverse external risk environment. 

It’s also interesting to look at financial liquidity’s prominence in audit plans within the context of increasing geopolitical risk. Geopolitical developments can disrupt financial risk in myriad ways, including funding constraints as investors become more risk-averse; supply chain or trade disruptions that interrupt payments and revenue streams; and sanctions that restrict or reshape access to international markets. 

In this context, financial and liquidity risks can no longer be viewed as narrowly as a finance function, but a strategic risk area that requires cross-functional coordination and forward-looking insight. Internal auditors and accounting professionals are increasingly being called upon to support more dynamic and proactive liquidity monitoring, scenario planning and stress testing. This includes contingency planning for risks that can directly impact financial liquidity, such as shifts in federal funding, market volatility, and human capital or supply chain disruptions. 

These dynamics reinforce the increasingly critical role of internal audit and accounting. In a risk environment defined by rapid geopolitical change and heightened financial and liquidity concerns, audit and accounting stand as a critical line of defense — helping ensure effective monitoring, strong internal controls and accurate, robust financial reporting to support organizational stability. 

As today’s rapidly evolving risk landscape continues to reshape organizational strategy and operations, the organizations that prioritize close, ongoing collaboration between internal audit, accounting, finance and risk management will be best positioned to adapt, endure and lead into the future.