Geopolitical Risk: The Risk That is Bigger Than We Think
Auditing is about minimising chaos in organisations and improving efficiency, managing risk and maximising smooth control and logical governance. So, understanding the nature of risk and global trends that drive risk which affect the smooth functioning of organisations is central to ensuring successful auditing. Auditors cannot simply examine the internal functioning of an organisation as if it is entirely disconnected from external forces that influence its activities. Business activities occur within an interdependent and globalised politicaleconomic and security environment that is shaped by geopolitical risk. Geopolitical risk is increasing rapidly, particularly since 2012, and shows no sign of decreasing.