2025 Horizon scanning for assurance functions

Whilst these risks are not new, their interconnectivity and the speed of change brings new challenges to businesses. Our 27th Annual Global CEO (‘Chief Executive Officer’) Survey tells us that, in 2024, CEOs are increasingly concerned about the long-term viability of their organisations, with many taking steps to refine their business models and rethink their strategies to survive. Internal audit’s role in helping businesses to navigate these risks, find opportunities and provide real value to stakeholders has never been more important. Foresight is key, and internal auditors need to be able to identify the future risks that matter to help businesses navigate this complex risk universe.

Having the right people with the right skills will foster a more strategic focus. However, to be truly successful, functions will need to go beyond having the right skills, people and tools, and fully embed a culture and behaviours that encourage an innovative, growth mindset across the entire team.

The supervisory and regulatory agenda continues to be exceptionally busy as regulators and other policy makers respond to a range of macro-trends. Key legislative changes that will impact the year ahead include: The Financial Services and Markets Act (‘FSMA’) 2023, the Edinburgh Reforms and updates to the UK Corporate Governance Code. Furthermore, the Government has outlined its vision for a financial sector that aims to balance consumer protection, competitiveness, innovation and financial stability.

Our annual horizon scanning documents are designed to support assurance functions in developing their audit universe, conducting risk assessments, and planning for 2025.

These resources are invaluable for C-suite executives, executive directors, and non-executive directors responsible for the governance and control of financial services institutions.

These insights are crafted to help you navigate the complexities of the current environment, enhance governance effectiveness, and strategically plan for the future.

This year's document covers the following key areas

Macrotrends: Stay informed with the latest UK economic outlook and geopolitical risks.

Regulatory Landscape: Get up-to-date with key regulatory updates, including an overview of the UK regulatory agenda, changes to the UK's Corporate Governance Code, and annual business plans from regulators.

Risk Hot Spots: Dive deep into critical areas impacting Financial Services and dominating boardroom discussions: Conduct and Governance, Prudential Matters, the Payments Landscape, Technology and Operations, Financial Crime, and Environmental, Social, and Governance (ESG). While these hot spots remain consistent with previous years, we've included new and contemporary topics and expanded on existing ones.

Professional Practices Standards: Understand the key changes to the Institute of Internal Auditors (IIA’s) Global Internal Audit Standards and get an overview of the Chartered Institute of Internal Auditors (‘CIIA’)’s newly published, combined Internal Audit Code of Practice, which will both be effective from January 2025.