Today’s business is aggressively developing and implementing a wide range of innovations—including cutting-edge breakthroughs in digital technology—that make business more streamlined and effective than ever. The result is “Transformed business processes with Transformed businesses”.

Well, the fast-paced transformation in the new normal is calling out every player in the market for massive opportunities equipped with efficiencies and strategic advantages but pose substantial challenges for businesses.

Transformative technologies such as Artificial Intelligence, Robotic Process Automation, Internet of Things, Blockchain, Data Analytics, 3D Printing, and Cloud are where discussion moves as a mechanism to drive and enable business growth. Business model are being differentiated on usage of these technology. While successfully implemented digital transformation can enable huge gain on flip side failed implementation can actually impact brand, culture and core strength build over ages thus impacting even sustainability of organization.

Thus there is need to dwell upon key risk management imperative for effective digital transformation that includes dedicated governance, strategy, implementation , monitoring and efficient reporting.

Every transformation originates from the ocean of opportunity followed by the extensive evaluation that requires a definite governance and roadmap to digital transformation strategy and planning. Apart from the governance covering steering committees, and decision making for review of the transformation initiative, it require effort in change and skill management. Actually Human and technology close collaboration is what need to be considered for true integration. Thus requiring to do proper risk assessment, analysis of alternate risk management approach and controls .Thus defining clear risk mechanism to be implemented, monitored and measured.

There is need for Digital transformation strategy which should come from business values, missions, organizational cultures, and goals. Well-defined policies and procedures around project portfolio management, relevant measurement criteria, protocols, and standards for implementation play a vital role throughout the process for success of digital initiative. There should also be well laid down transformation metrics, which should be evaluated . Performance reporting should cover aspect around skill development, capacity management, and training for managing digital transformation initiatives over long run.

With strategy and planning comes the implementation that requires answers to several questions like what key data sources and data platforms are necessary? How will technology innovation be incorporated on time? What costs are required to support the implementation?

And, is implementation secure and align with the business need? Digital transformation is only beneficial when there is adequate stakeholder commitment, budget and resource allocation, robust project management, and constant monitoring

Once, we complete the execution, comes reviewing and reporting the imperative of digital transformation that requires direct involvement of an internal auditor.

If we analyze the whole digital transformation journey. Risk professional specifically skill developed by Internal auditor can play significant role and can be game changer for effective transformation.

Internal auditors with their skillset and polymath knowledge understand the business objective, goal, mission, risks, and perform regular risk-based advisory and audit across domains. They provide audit support across strategy, operation, and compliances. Thus, giving a holistic view of risk monitoring and enabling effective risk management.

Also, as an ideal advisory partner, a sounding board for selection and prioritization of business processes and technology for digital transformation. They can use their risk experience to enable the business to take an appropriate risk-based decision for effective digital transformation throughout the cycle of a transformation journey. The internal auditor can provide a point of view based on business understanding experience & market. They can regularly review and provide timely feedback for corrective action. They should however ensure to remain focused and independent, so as to also discharge their responsibility as internal auditor while reviewing and providing audit opinions.

Today, the competition is not about new products/services, or technologies but also demands innovative business models embedded with the latest technologies and skillset . Skills developed by Internal auditor actually can be leveraged for efficient risk based digital transformational journey.

Co-author-Nidhi Mishra