The digital revolution has ushered in a new era of opportunities, but it has also opened the floodgates to a myriad of risks. IT Audit, an essential pillar of risk management, is evolving rapidly to keep pace with these changes.
More and more, organizations hinge their operations on digital infrastructure, hence why IT Audit Risk Management is so integral. It helps businesses navigate this complex landscape by identifying potential risks and vulnerabilities in their IT systems and implementing preventive measures. Its role in ensuring business continuity, protecting sensitive data, and upholding regulatory compliance has made IT Audit Risk Management an indispensable component of modern enterprise strategies.
Mojisola Ologe, a seasoned expert in the field, has particularly unique insights on this transformative journey. Mojisola, who holds a Masters’ in Business Administration and Data Analytics, has been at the forefront of this evolution, applying her proficiency in data analysis using tools such as Python, R, SAS, and VBA to refine IT audit risk management practices.
“The key lies in understanding that today’s technological landscape is not the same as it was a decade ago,” Mojisola emphasizes. “Cyber threats, data breaches, system failures, and compliance issues have all become common, and businesses must adapt to these realities.” In 2022, the mean cost of a data breach escalated by 2.6% to a record-setting $4.35 million, up from $4.24 million the previous year. This marks the steepest amount ever reported in IBM Security’s “The Cost of a Data Breach Report”.
“The landscape of risk has changed significantly with the advent of digital technologies and it is important for businesses to identify, assess, and mitigate these risks in order to ensure sustainable growth,” says Raimi.
Raimi has made considerable strides in this area, notably reducing financial losses by 60% during his tenure as the Head of Insurance and Enterprise Risk Management at Kobo360 Inc. This feat was accomplished largely due to his ability to leverage data analytics in decision-making processes.
Industry expert Mojisola Ologe
Gartner reports that a significant 91% of businesses are undertaking one or more digital initiatives, with a high percentage of senior leaders, 87% to be exact, acknowledging digitalization as a priority. In line with this digital shift, almost 89% of all companies have either already implemented a digital-first strategy or have plans in the pipeline to do so.
“The key to effective IT Audit Risk Management lies in the ability to leverage data,” says Raimi. “Data is a powerful tool that can help organizations identify potential threats and vulnerabilities before they materialize into full-fledged risks.”
Through the use of data analysis techniques, organizations can better understand their risk landscape and design more effective risk management strategies. For instance, predictive analytics can be used to anticipate potential system failures or security breaches, allowing organizations to take preventative measures in advance.
Another critical aspect is the integration of data analytics in compliance management. According to a 2022 report by Deloitte, 49% of companies now use analytics to manage compliance risk, up from just 21% in 2017.
“Compliance is not just about meeting regulatory requirements, it’s also about maintaining the trust of your customers,” Mojisola remarks. “Data analytics can provide actionable insights to help ensure compliance and, by extension, customer trust.”
While data analysis is a powerful tool in managing IT Risk, Mojisola also emphasizes the need for a holistic approach. This involves a robust understanding of the organization’s culture, processes, and systems.
“An effective IT Audit Risk Management program requires a multifaceted approach,” Raimi explains. “Data analysis is one piece of the puzzle, but it needs to be integrated with other aspects like corporate culture and process improvement.”
As organizations continue to digitalize, the role of IT Audit Risk Management becomes increasingly important. By leveraging data analysis and drawing on the insights of industry experts like Mojisola Ologe and Babatunde Raimi, businesses can equip themselves to navigate the evolving risk landscape with confidence.
To this end, they leave us with a thought-provoking insight: “IT Audit Risk Management is not just about mitigating risks, but it’s about turning those risks into opportunities for growth. And that’s where data can make all the difference.”