- Hi, I am Yashaswi Goel, a Risk Advisory Consultant, who has worked with some prominent names such as EY and Protiviti.
- In the past six years, I have noticed drastic transformations in the field, with AI being the most crucial disruptor.
- Today business processes are being automated, thus Risk Advisory Professionals need to adopt the latest technology and AI in assessing dynamic work practices.
Backstory
As a Chartered Accountant, I have always been keen to get into a role that offers extensive corporate exposure. A role where I could make a meaningful contribution to the industry and the clients I serve.
I was not drawn to traditional finance areas, hence I opted for internal audit and risk advisory where I could add value to business operations and make a significant impact.
In 2019, I began my professional journey at EY India, as a Risk Advisory Analyst. I then gained global experience at Protiviti before transitioning to EY Forensics.
In February 2023 I kicked off my adventure with PwC India, and within just a year, I found myself jetting off to explore the vibrant landscapes in the UK, Spain, China, Morocco, and Mexico!
Unlike tax and audit, my role in internal audit offers great travel opportunities.
In terms of audit methodology and transaction flows, the requirements for documents remain consistent across regions, although technological advancements may vary. While some countries boast superior technological infrastructure compared to India, others may lag significantly behind.
Day in my life
I typically handle multiple audits simultaneously, focusing primarily on internal audits, risk advisory services, and fraud investigations.
My day begins with discussions with clients to understand their requirements and align our tasks accordingly. I also interact with colleagues to coordinate tasks and evaluate pending deliverables.
While on-site with clients, I prioritize understanding their operations and processes, providing industry insights and recommendations for continuous improvement. I aim to offer value beyond the initial audit scope by identifying areas for enhancement and delivering actionable insights to clients.
The Risk Advisory field will cover key business aspects related to operations, finance, and compliance.
How Risk Advisory has evolved
In the past 5-6 years, I had the opportunity to collaborate with different clients from India and around the world in different sectors.
I have worked for international companies in Europe, Asia, and Africa, and believe the work methods and risk assessment standards are the same worldwide.
However, the Risk Advisory field has undergone significant development.
Upgraded work methodology: The worldwide economy was impacted by the COVID-19 pandemic, which led to significant changes in the Risk Advisory field’s approach.
Better Governance Framework due to cyber threats: Several economic reports have emphasized Cyber and Data Privacy Risks as the main risks that business organizations are encountering.
That’s why, as part of the Governance Framework, Internal Controls & Internal Audits play a crucial role in evaluating these risks during operational audits and control frameworks.
Increased business transactions: The number of business transactions and third-party vendors has grown significantly in recent years, and so have the associated risks. Many businesses rely on third-party intermediaries (TPIs) for crucial operations, making thorough due diligence on these TPIs extremely important.
Analytics: Currently, it is necessary to analyze the entire population for risk assessment rather than depending on sample testing.
In today’s business world, risk professionals must possess strong data analytics skills and be familiar with Enterprise Resource Planning (ERP).
Usage of data analytics tools: Data Analytical tools like Power-BI, Alteryx, and Python for Business Finance help a lot in data crunching and getting meaningful results to assess risk in business operations.
Regular Risk Assessments: We must conduct routine Fraud Risk Assessment (FRA) and Anti-Bribery and Anti-Corruption (ABAC) Risk Assessments for important business operations.
It helps us maintain Compliance and Business Continuity. During audits, stakeholders want to ensure that all transactions are thoroughly reviewed to identify any potential financial discrepancies.
Threat of Compliance Risks: Business stakeholders are increasingly concerned about the risks related to operations, finances, and compliance that their company might encounter.
Compliance risks are a major concern for businesses across industries, as failure to comply with regulations can have long-term impacts on business continuity.
Adoption of AI in Auditing: In recent years, we have seen a major push on Data Analytics and the adoption of Artificial Intelligence (AI) in the review process.
AI is being used extensively in Audits now, to crunch huge volumes of data, assess controls on data privacy, and assess cyber risks across a diversified workforce of business entities.
All leading consulting firms use AI Tools in Audits to enhance audit scope coverage on complex business processes and give a reasonable assurance to minimize operational and financial risks.
AI and Automation
2024 is the era of digitalization.
It’s not like we can rely on the traditional audit methodologies and be like, all things will go on track. We need to push our limits and we need to be way ahead.
Here is where I see automation having an impact on risk advisory:
Minimizing Fraud Risks
Automated controls on potential fraud risk areas can minimize operational and fraud risk to a great extent.
For instance, with the help of these tools, if we are verifying expenses, such as detecting any manipulation or fake invoices being submitted as evidence, the AI tools will identify them in advance.
Risk Professionals will now need to adopt a proactive approach to adopting technology in addition to finance and compliance knowledge.
Drive organizational goals
The robust automation of business processes and AI assessment has opened up opportunities for Risk Professionals to cooperate with business operations and provide ongoing value to organizational goals.
The evolution of AI and the Risk Advisory profession will go together for economic benefits.
Risks due to the prevalence of AI and tech!
Post-COVID-19 pandemic, we have seen a major shift in the use of Digital Data transmission and the use of virtual workspace. This has increased the risk of potential unethical practices.
So be vigilant and beware of putting classified information into these AI tools.
Requirement for human intellect
Yes, AI indeed helps to increase the quality and coverage of risk assessment.
However, Risk Professionals will always be required for document validation and presenting meaningful results to various stakeholders regarding the key risks identified.
Also read: GenAI & Cloud technologies: At Oracle Cloudworld Tour 2024 I learnt how GenAI will disrupt taxation
Hiring trends & skills needed
In the next few years, Risk professionals will be required in every industry, in every part of the globe.
The opportunities in this field have increased manyfold across all levels in both consultancy and industries.
Consulting
I believe that consulting provides a wide range of learning opportunities in various industries and helps Risk Professionals become trusted advisors to the industry.
At the moment, I feel the need to expand my knowledge through consulting.
Industry
All leading industries have in-house risk teams gearing up the organization’s internal controls & compliance framework through audits and fraud risk assessments.
Risk Teams in industries also conduct investigations around whistle-blower complaints or irregular activities highlighted to the management.
Further, risk professionals’ opinions are of immense importance in framing an organization’s long-term growth plan like diversification and stakeholder management.
In terms of my plans, in the future, I may consider transitioning to roles within the industry. Here I can apply the knowledge and skills I have gained from consultancy to establish a robust governance framework for an organization.
Risk Advisory Professionals with the following skills will be in huge demand across the globe, in the coming years.
- Finance
- Tech
- AI
- Data Analytics
- A deep understanding of key business processes can help you climb to top-notch positions like CEO, and CFO
Also read: Future of AI is India: Why finance professionals in India must prioritize upskilling
Wrapping up
There is a famous quote ‘The one who masters Internal, Control Externals’. The same applies to the Business Governance Framework.
And Risk Advisory will be the main pillar of the Governance framework.
Only if we know the business processes well then only we can identify the organization’s risks and help in building a good governance framework.
All business stakeholders look upon Risk Advisory professionals as trusted advisors.
To live up to business stakeholders’ expectations, I advise all Risk Advisory Professionals to make every possible effort to stay updated with new technologies recent enactments, and economic developments.
