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Risk management and regulatory oversight remain central to the audit committee agenda. The convergence of cyber risk, artificial intelligence disruption and economic volatility is driving boards to rethink legacy approaches and integrate risk and strategy more deeply.
Audit committees are expected to move beyond static risk updates, adopting portfolio-driven views and scenario analysis to address interconnected and nonlinear risks. This includes reassessing cyber incident response plans, monitoring regulatory changes, and making sure robust controls and processes are in place to manage emerging threats and compliance requirements.
In addition, audit committees are closely tracking developments in financial reporting, tax policy, and sustainability disclosures. The evolving regulatory environment — marked by new Securities and Exchange Commission (SEC) leadership and rulemaking and shifting global tax regimes — demands heightened vigilance and agility. Audit committees also continue to prioritize audit committee effectiveness and seek ways to enhance their own practices. This includes investing in ongoing education (including in topics such as cybersecurity, AI and regulatory changes). By promoting strong governance and continuous learning, audit committees can help their organizations navigate uncertainty and seize opportunities for transformation in the year ahead.
Want to learn more? Download "2026 audit committee priorities" to learn about key developments related to risk management, financial reporting, and regulatory developments.