19DECEMBER 2024Digital transformation, characterized by innovation, rapid technological evolution, and an enhanced stakeholder experience, is imperative for organizations and business units in today's context. The demand for change has also extended to the internal audit function, presenting two primary challenges: identifying new or updated unmitigated risks and using new technologies to optimize resources.Regarding the first challenge, the accelerated adoption of new technologies and the evolution of business processes generate new risks that require proper evaluation and mitigation. For the second challenge, digitalization improves the efficiency of audit tasks, resulting in more resources available for the firm to reallocate to higher-value activities.Experience shows that many digitalization initiatives in internal audit do not meet expectations. The most common issues include inadequate definition of project objectives, poor change management processes, and insufficient human or technical resources to carry out the transformation. Problems usually arise when the transformation project focuses on implementing isolated measures rather than adopting a holistic approach that includes all elements involved in the transformation process.Internal audit teams should implement an integral and collaborative approach to overcome these challenges. It is essential to involve auditors in developing and using analytical tools, fostering a culture of change and innovation within the A HOLISTIC APPROACH TO DIGITALIZING INTERNAL AUDIT IN FINANCIAL SERVICESBy Dr. Enzo Tolentino, Head of Audit - Data Analytics, Continuous Auditing and Corporate Development, BCP Credit BankINSIGHTSCXODr. Enzo Tolentino
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