Embracing real-time risk assessment: A practitioner’s guide for internal audit teams in 2026

For an F1 driver hurtling around a track at over 200 miles per hour, every split second matters. The track isn’t static—weather conditions shift, tires wear down, and other drivers make sudden, unpredictable moves. Winning isn’t just about the driver’s nerves of steel; it’s about the pit crew glued to their monitors, reading a flood of sensor data, and making lightning-fast calls. They’re tweaking and fine-tuning in real time, keeping their driver in the race and out of the wall.

The teams that come out on top aren’t the ones who stubbornly stick to their pre-race script. They’re the ones who adapt on the fly, using live data and teamwork to make decisions in the blink of an eye. For internal audit teams, 2025 is your green light. The traditional way of assessing risks once a year and crossing your fingers that nothing changes is no longer optimal. Regulations, tech, and stakeholder demands are all moving at breakneck speed. Audit teams need to think and act in real time, like a pit crew, remaining agile, alert, and always in sync with shifting risks and organizational priorities.

Why it’s time to rethink your risk assessment approach

Let’s be honest; the risk landscape is a moving target. Regulations change, AI and cybersecurity keep advancing, and business models can get upended overnight. Newer risks related to AI governance, third-party risk dependencies, and digital transformation pop up so quickly that the annual risk assessment cycle can’t keep up. What seems urgent in January is irrelevant come July.

Take AI, for instance. It’s not just a buzzword anymore; it’s rewriting the rules for entire industries. Meanwhile, digital disruption, geopolitical uncertainty, or even a social media post can send shockwaves through global supply chains in hours, not months. Generative AI brings its own headaches with data privacy, AI hallucinations, and murky regulations that annual assessments struggle to capture. As AuditBoard points out, auditors are under the gun with more risks, higher expectations, and fewer resources to help. By the time you’ve written up a risk, it might already be yesterday’s problem.

The chance to add real strategic value

But here’s the upside: this isn’t just about dodging landmines. It’s a unique opportunity for internal audit to step up as a true strategic advisor, right in line with the Internal Audit Foundation’s (IAF’s) Vision 2035. By shaking up the risk assessment process, audit teams can deliver insights when they matter most; help leaders make smarter decisions, and guide organizations through the fog of uncertainty. The new Global Internal Audit Standards are clear; internal audit shouldn’t just tick boxes, they should help drive resilience and create real value to the organization.

Internal audit has a unique bird's-eye view across the business. By updating how you assess risk, you can become a go-to partner for leadership by helping them see what’s coming around the corner instead of just reporting on what’s already happened. This isn’t just about adopting new tech; it’s about embracing a mindset of agility, collaboration, and always looking ahead.

Key questions to challenge your current risk assessment process

As you get ready, it’s worth asking yourself and your team a few tough questions.

1. Is your risk universe current and comprehensive? Are you tracking both the usual suspects and the new threats, or are you stuck with a list of risks that may no longer be relevant? A living risk universe should be few by fresh input from stakeholders, available data, and outside sources because sometimes the best insights come from unexpected places. Gartner’s 2Q25 Quarterly Emerging Risk Report highlights the top emerging risks to be tariff and trade wars, consumer spending slowdown, and “shadow AI.” Are those on your radar?
2. Can you pivot when priorities shift? If a new risk pops up, can you change course mid-year, or are you locked in a rigid plan? True flexibility means having both the culture and the processes to move resources where they’re needed most
3. Are you making the most of data and technology? Are you still relying on interviews and surveys, or are you tapping into dashboards, analytics, AI, and continuous monitoring? Technology can spot trends and outliers that traditional methods can overlook.
4. How well do you collaborate across functions? Are you engaging with IT, compliance, operations, and risk management to get a connected view of risk, or is your risk assessment siloed within your four walls? Cross-functional collaboration is key to seeing the full risk picture.

Practical steps to shift your risk assessment this spring

Moving to a more dynamic, real-time risk mindset doesn’t mean overhauling everything overnight. But it’s never too late to start! Here are a few practical moves you might want to make this spring.

Treat your risk register as a living document. Update it regularly—not just annually—based on new data, stakeholder input, and external intel. This keeps your risk profile current and relevant, enabling more timely decision-making. A “dynamic” risk assessment is one that continuously ingests new data from multiple sources.

Schedule more risk reviews. Don’t wait for the annual cycle. Break the cycle and schedule mid-year (or even quarterly) risk reviews. These regular check-ins let you reassess the risk landscape, fold in new intelligence, and recalibrate your audit plan as needed. According to RSM, regular meetings with leadership are crucial to realigning emerging risk priorities.

Empower your team to escalate emerging risks. Build a culture where auditors and stakeholders feel comfortable flagging new risks as they arise. Set clear escalation protocols and encourage open dialogue about emerging threats.

Break down siloes and share risk intel. Get IT, compliance, operations, and risk management to openly talk about risks. These conversations will break down silos and ensure your risk assessment captures the full spectrum of organizational risks.

Widen your risk radar. Use frameworks like PESTLE (Political, Economic, Social, Technological, Environmental, Legal) to spot risk that might not be obvious but could have big ripple effects.

Lean into data and tech for real-time insights. Start using dashboards, KRIs, analytics, and AI to dig deeper for risks. Set up alerts for things like vendor issues or unusual financial transactions. Catching problems early is half the battle.

Tackling the usual roadblocks

Moving to a dynamic risk approach isn’t without its hurdles, but there are practical ways to address the most common challenges. Resource and skill constraints are often top of mind, so it’s okay to consider co-sourcing with outside experts, upskilling your current team, and leveraging technology to automate the routine tasks. Build up your capabilities gradually, making the most of the tools and data you already have.

Data quality and integration issues can undermine even the best-intentioned risk assessment efforts. Good data is the bedrock of effective risk management. Start by asking yourself what your most critical data sources are. Work with IT and data owners to close gaps, focusing on incremental improvements rather than chasing perfection. For example, a manufacturing company might begin by integrating just two data sources (production downtime and supplier incidents) into their risk dashboards, then gradually add financial and HR data for a fuller picture.

Cultural resistance to change is another frequent barrier, especially when new approaches challenge what has always been the norm. To overcome this, win over leadership by showing quick wins like faster risk detection or more relevant audit findings. Keep the lines of communication open, highlight the benefits of agility, and involve stakeholders early and often.

And don’t forget that automation is a tool, not a replacement for human judgment. Use technology and automation for routine monitoring and data aggregation, but keep critical thinking and professional skepticism front and center in your risk assessment process.

Looking ahead: Getting ready for 2026 and beyond

Risks aren’t decreasing or getting any simpler. Internal audit teams need to stay ahead of the curve, especially with AI, cybersecurity, and shifting regulations on the horizon. Staying plugged into industry forums, tracking regulatory updates, and investing in ongoing learning will help you keep pace.

Take what you learn in 2025 and bake in agility into your 2026 audit strategy. Agility isn’t just a buzzword; it should be part of your team’s DNA. Be ready to pivot, keep your plans flexible, and always have an eye on what’s next.

By delivering timely, relevant insights, internal audit can become a true strategic partner and advisor. It can help leaders navigate uncertainty and spot new opportunities before they become risks, strengthening its role as a strategic partner and driving value and long-term support.

Winning the race with real-time adaptation

Just like F1 teams win by adapting their strategy on the fly, internal audit teams need to evolve their risk assessment approach to stay ahead of the curve. 2025 is your starting grid, but the real victory goes to those who can adapt, respond, and lead as the risk landscape shifts.

So, this spring, challenge your team to take one meaningful step toward a more dynamic, real-time risk mindset. Whether it’s updating your risk register more frequently, leveraging more data, or fostering cross-functional collaboration, even small changes can set you up for a more agile and impactful 2026.

The pace of risk isn’t slowing down. But with the right mindset, your internal audit team can be the strategic navigator your organization needs—ready to steer through uncertainty and deliver value at every turn.

About the authors

Scott Madenburg, CIA, CISA, CRMA, is the founder of ARCHybrid, where he serves as a market advisor, consultant, and trainer, guiding organizations and professionals in transforming their audit, risk, and compliance functions to enhance efficiency, strengthen controls, and address emerging threats. Connect with Scott on LinkedIn.