Risk no longer lives in silos. When security teams identify a 

, it impacts regulatory compliance. When compliance finds a gap, it affects audit findings. When 

environmental, social and governance (ESG)

 initiatives encounter challenges, they create financial and reputational risks across the enterprise.

Organizations with disconnected risk functions face a dangerous reality: Risk information scattered across departments means leadership lacks visibility into how threats compound across the business.

, only 7% of organizations currently consider themselves leading in compliance maturity, with just 31% classifying themselves as mature, leaving most vulnerable to blind spots that regulatory bodies and stakeholders increasingly scrutinize.

by connecting internal audit, compliance, security, risk management and ESG functions on a single platform. This approach transforms risk from reactive firefighting into proactive business intelligence that supports strategic decision-making across all organizational levels.

What integrated risk management is and how it differs from traditional risk approaches

The six core activities that define effective IRM programs

Why IRM has become essential for mid-market and enterprise organizations

How to implement an integrated risk management framework in your organization

The relationship between IRM, ESG and broader governance initiatives

What to evaluate when selecting modern IRM technology

Integrated risk management (IRM) is a holistic practice that creates a single view of risk on a unified platform across 

 and ESG teams. Rather than managing risks in departmental silos, IRM connects risk data, processes, and insights to provide leadership with unified visibility into enterprise threats and opportunities.

, which first coined the term "integrated risk management" in 2017, defines IRM as "a set of practices and processes supported by a risk-aware culture and enabling technologies." This definition emphasizes that successful IRM requires both organizational culture and the right technological infrastructure.

Organizations previously managed risk through separate teams handling cybersecurity, 

. Today's regulatory complexity and interconnected risks make this siloed approach both inefficient and dangerous.

"Risks are all integrated; they're not isolated," says Edna Conway, Board Director and Executive Advisor. This reality drives the need for integrated risk management approaches that reflect how risks actually compound across modern organizations.

Why is integrated risk management important?

Integrated risk management is important because technology is changing faster today than ever, bringing with it new risks relating to digital technology and cybersecurity. IRM helps your organization keep pace with this challenge.

In many organizations, the chief executive officer (CEO) and executive board, rather than regulatory bodies, are now in control of risk management. Regulatory bodies pushing these executives to adopt best practices worked well in the past; siloed teams were acceptable for managing risk programs when new technology options were few. Having separate security and risk management teams worked to achieve the organization’s goals.

With new risks and new regulatory requirements continuously evolving, these strategies no longer work. Modern organizations require new 

 that allow for complete oversight rather than siloed teams with a limited understanding of how they connect. This is why integrated risk management is important to your overall 

"There needs to be collaboration between risk and the business, vertically up and down, but then also horizontally across the organization," says Michael Rasmussen, CEO of GRC Report. "The problem is there are silos."

What are the 6 key activities for integrated risk management?

Taking action toward the six elements of integrated risk management can help jumpstart your journey toward a more comprehensive risk strategy. According to 

: Enabling and implementing an integrated risk management framework that aligns with business objectives

: Identifying, evaluating and prioritizing risks across all organizational functions

: Identifying and implementing risk mitigation mechanisms and methods with clear accountability

: Implementing the means to inform stakeholders of an organization's risk response

: Identifying and implementing processes that track the effectiveness of governance objectives, risk ownership, accountability and regulatory compliance

: Implementing an IRM solution or solutions that unify risk data and automate key processes

How to implement integrated risk management in your organization

Moving from siloed risk management to true integration requires systematic change across people, processes, and technology. Organizations successfully implementing IRM typically follow this progression:

1. Build executive sponsorship and cross-functional alignment

IRM requires organizational change that only executive leadership can authorize. Chief risk officers, chief audit executives, chief compliance officers and chief information security officers must align on shared objectives, agree on integration priorities and commit resources to the initiative.

 with representation from all risk functions. This team defines the IRM vision, establishes 

 and resolves conflicts between departmental priorities and enterprise integration needs.

2. Establish common risk language and frameworks

Different risk functions often use different terminologies to describe similar concepts. Security teams discuss "vulnerabilities," while 

 reference "control gaps," and risk managers identify "exposures."

Develop an enterprise risk taxonomy that all teams adopt, standardize risk rating methodologies so assessment results can be compared across functions, and create unified risk categories that map to business objectives rather than departmental structures.

3. Select and implement enabling technology

Technology selection represents a critical decision point. Evaluate IRM platforms based on:

Integration capabilities with existing systems

AI and automation features for risk identification and assessment

Scalability to support organizational growth

Experience that encourages adoption across teams

Vendor expertise in delivering successful implementations

Organizations should prioritize platforms that offer both depth in risk capabilities and breadth across all GRC functions. Disconnected point solutions perpetuate silos even when marketed as "integrated."

4. Start with high-value integration points

Complete IRM transformation takes time. Start with integration initiatives that demonstrate clear value quickly. Common starting points include:

 provide valuable insights into control effectiveness that risk teams need for accurate assessments. Connecting audit findings to risk registers creates immediate visibility improvements.

 create risks when not met. Linking compliance monitoring to risk management ensures control gaps receive appropriate priority and resources.

Cybersecurity and operational risk integration:

 Security incidents impact multiple risk domains. Connecting security operations with 

 helps organizations understand the full business impact of cyber threats.

Strategically manage risk by identifying, prioritizing and responding to risks wherever they originate.

Enhance risk management

5. Measure outcomes and expand integration

Track metrics that demonstrate IRM value. This includes a reduction in risk assessment cycle time, an increase in cross-functional risk identification, an improvement in 

 satisfaction, a decrease in duplicate risk mitigation efforts and an acceleration in emerging risk response times.

Use early wins to build momentum for broader integration across all risk functions.

The relationship between integrated risk management and ESG

ESG factors represent critical risk domains that belong within integrated risk management frameworks rather than existing as separate initiatives. The question isn't whether ESG relates to IRM — it's how to ensure ESG risks receive the same rigorous oversight as financial, operational and compliance threats.

Why ESG integration matters for enterprise risk

ESG factors create tangible business risks that cascade across organizations:

Climate change disrupts supply chains and creates regulatory compliance obligations

Social factors like workforce diversity affect talent retention, innovation capacity, and reputation

Governance structures determine how effectively boards identify and respond to all risk categories

Organizations treating ESG as separate from core risk management create dangerous blind spots. Climate risk isn't just an environmental issue — it's a supply chain risk, a financial risk, a regulatory risk and potentially a reputation risk.

Additionally, social considerations affect operational continuity and legal exposure, and governance failures enable risks across all other domains.

Organizations implementing IRM should incorporate ESG through systematic integration across all core risk activities:

 Include ESG factors in enterprise risk identification processes using the same frameworks and rating scales applied to other risk domains. Climate risks, social factors and governance structures should appear in unified risk registers alongside operational and financial threats.

 Assign clear accountability for ESG risk mitigation just as you would for cybersecurity or compliance risks. ESG initiatives shouldn't float outside standard risk response protocols — they need defined owners, mitigation plans, and progress tracking.

 into board-level risk reporting rather than treating ESG as a separate agenda item. Directors need to see how environmental, social, and governance factors affect overall enterprise risk posture.

 Connect ESG initiatives to organizational risk appetite frameworks. What level of climate risk is acceptable? How do diversity and inclusion goals relate to broader talent and reputation risk tolerance?

This approach ensures that ESG considerations inform strategic decisions rather than existing as compliance checkbox exercises that are disconnected from actual business risk management.

Selecting appropriate IRM technology requires understanding that integrated risk management tools are fundamental aspects of successful IRM adoption. 

 explicitly includes "enabling technologies" as core components of effective IRM frameworks.

IRM solutions should provide integrated risk management software that facilitates organizational transformation by automating risk data collection, implementing triggers and automated actions when risk thresholds are reached and providing comprehensive analytics for strategic decision making.

When considering an IRM solution, you should think about:

 Is the solution easy to integrate with existing software or platforms? Can it be tailored to your organization’s needs? Are there limitations on the data it can incorporate?

 Is it intuitive and easy to learn? Is there training and support available?

What are the costs associated with this IRM solution? Are all elements mandatory, or can they be scaled to your needs?

 What does the tool offer in terms of analytics? Can your teams pull reports that provide actionable information? Can data be customized to meet the needs of the board and leadership?

The best IRM tools measure existing performance and provide insight into mitigation and remedial actions. Does your preferred IRM technology offer this?

 Is your chosen provider experienced? Can they share good reviews and client feedback?

 Does the solution enable you to learn from experience and improve your approach to integrated risk management?

Transform risk management with AI-powered integration

Organizations can no longer afford disconnected risk functions that create blind spots in enterprise oversight. Integrated risk management provides the unified visibility that boards, regulators and stakeholders increasingly demand.

With this in mind, Diligent provides a suite of integrated solutions. For example, the 

 delivers IRM capabilities that connect audit, risk, compliance and ESG functions on a single unified platform.

Our AI-powered solutions accelerate risk identification, automate assessment workflows, and provide the strategic intelligence that transforms risk management from defensive compliance into proactive business value.

 solution enables organizations to strategically manage risk by rapidly identifying, prioritizing and responding to risks wherever they originate.

The platform provides complete visibility into enterprise risk posture with built-in dashboards and customizable reporting that empower executives to make confident, data-driven decisions. By automating manual workflows and eliminating departmental silos, organizations gain the holistic view needed to ensure audit-readiness and compliance across the enterprise.

 provides the continuous monitoring and analytics capabilities that enable truly proactive risk management. Rather than periodic control testing, ACL Analytics monitors 100% of transaction data to identify anomalies and control failures the moment they occur.

Together, these solutions provide the integrated platform capabilities that mid-market and enterprise organizations need to mature from reactive risk management to proactive, intelligence-driven oversight.

Discover how Diligent's AI-powered IRM solutions can transform your risk management from siloed processes to enterprise-wide intelligence. 

 to see how we can help you achieve true integrated risk oversight.

What is the difference between GRC and IRM?

GRC (governance, risk and compliance) is a broad organizational approach encompassing governance structures, risk management processes and regulatory compliance activities. IRM specifically focuses on integrating risk management functions across organizational silos to create unified risk visibility.

While GRC provides the framework, IRM represents the operational methodology for connecting previously separate risk functions.

How long does IRM implementation typically take?

Implementation timelines vary based on organizational complexity and integration scope. Organizations typically see value in three phases.

 3-6 months to implement core IRM technology, migrate essential risk data and train initial users.

 6-12 months to align risk processes across functions, establish common frameworks and build cross-functional workflows.

Integrated risk management: How to understand and implement IRM

Internal audit plays a core role in keeping organizations on the right path, with internal audit management key to delivering the "checks and balances" that assure companies' 

governance, risk management and compliance processes

. An internal audit ensures that internal controls are operating as they should, and as a result, helps your organization remain ahead of emerging risks.

The landscape for internal audit has transformed significantly in 2025. According to The Institute of Internal Auditors' Global Risk in 

, including cybersecurity threats, digital disruption and complex regulatory requirements. This demands more sophisticated internal audit management approaches than traditional compliance-focused methods.

To this end, this article covers effective internal management, including:

What an internal audit is and how the 2025 Global IIA Standards reshape audit management requirements

10 best practices for internal audit management

How AI-powered technology transforms internal audit effectiveness

 is how companies evaluate their internal controls, including governance and accounting processes. It has increased significantly in recent years as the 

 has tightened reporting requirements around financial controls.

The profession underwent a fundamental shift in 2025 when the 

 implemented new Global Internal Audit Standards, replacing the 2017 International Professional Practices Framework. These updated standards emphasize risk-based strategic advisory roles rather than purely compliance-focused activities.

Internal audits ensure that your processes comply with relevant regulatory and legislative requirements, and support accurate data gathering and reporting, whether on financial, 

 (ESG) or other data. Current federal AI governance mandates have also expanded internal audit responsibilities to include 

By providing independent assurance and advisory services, internal audits serve as management's first opportunity to identify problems before external audits, enhance operational efficiency and improve risk management practices.

What is the purpose of an internal audit?

By providing the first line of defense against poor processes and controls, an internal audit is your primary tactic in the war against non-compliance. However, the benefits of effective internal audit management extend beyond mere compliance.

The IIA's 2025 North American Pulse survey

, involving over 3,500 internal audit leaders globally, reveals that audit committees now prioritize three critical areas: cybersecurity oversight, enterprise risk management integration and addressing significant talent challenges across finance and internal audit functions.

Effective internal audit management can also monitor and enhance 

, a UK regulator, recently noted, the internal audit process "has a vital role to play in providing assurance and reports to the board that the culture is healthy." Governance and culture are intrinsically linked, with the FRC believing that good governance is "aligned to a positive corporate culture."

, you turn a compliance exercise into an opportunity to use the audit process for business improvement. Internal audit strengthens integrated risk management, 

 and elevates the audit team from compliance practitioners to strategic advisors.

While external audits examine prescribed controls and risks, your internal audit function is more comprehensive. In an ideal environment, your internal auditor combines auditing rigor with consulting insight — checking processes while suggesting improvements that help your organization evolve and grow.

Exploring best practice internal audit management processes

Being able to achieve this demands that you put in place some 

best practice approaches to internal audit

 management. Based on current industry research and the updated IIA 2025 Standards, we've identified ten essential internal audit management strategies.

1. Comprehensive audit planning drives success

 is vital — it will help get buy-in for the process, ensure deadlines are met, and facilitate the availability of all the data you need to conduct the audit.

Your audit plan should reflect your organization's strategic priorities, not just compliance requirements. Start by understanding which business objectives keep your C-suite awake at night: market expansion, digital transformation, M&A integration or regulatory changes.

Afterward, explain the audit process to the team you're auditing. Don't forget to convey the benefits of the audit; it's a process designed to benefit them, not just to fulfill a governance need. Talk about increased efficiency, better processes and the opportunity to do a trial run for an external audit.

Establish a core team, communicate the scope of the audit, and share details of the data you will need and the systems you will want to access. Send materials to participants at least seven days before meetings to ensure adequate preparation time. Carrying out a preliminary risk assessment may help you with this last point.

2. Engage with the business you're auditing

Turning up once a year, with little forewarning, auditing a department and then disappearing for another 12 months does not help build the necessary bridges between internal audit and the rest of the business.

Communicate frequently, explain your objectives to resonate with the team being audited, and feed back on findings, next steps and outcomes to ensure everyone involved feels part of the internal audit process. Position your internal audit team as business consultants who help departments continuously improve their risk management processes.

Schedule regular meetings with business unit leaders outside of formal audit cycles. These conversations help you:

Build the trust that makes audit fieldwork more effective

 relationships, provide regular updates on audit activities, risk trends and control effectiveness. Don't wait for formal reporting cycles to share significant findings. Proactive communication builds credibility and positions the internal audit team as a trusted advisor.

3. Implement continuous risk monitoring and assessment

Traditional annual audit cycles create gaps where risks evolve faster than your audit plan addresses them. 

 closes these gaps by providing ongoing visibility into control effectiveness and emerging threats.

Establish mechanisms for real-time risk intelligence gathering across your organization. This includes automated control monitoring, exception reporting and regular touchpoints with business units to identify new risks before they materialize into issues.

Technology enables this shift from periodic to continuous oversight. 

 can analyze 100% of transactions rather than samples, flagging anomalies and control failures as they occur rather than months later during scheduled audits.

Continuous monitoring doesn't replace audit cycles but enhances them. Use continuous controls monitoring to identify where to focus detailed audit work. This allows your team to shift from routine testing to investigating exceptions and providing strategic guidance.

4. Identify and test key controls using risk-based prioritization

Your risk assessment will enable you to pinpoint significant risks and the controls that manage them. The 2025 IIA Standards emphasize risk-based auditing that aligns with organizational strategy and emerging threats.

Whether this involves testing your organization's 

, examining financial controls, or addressing other specific organizational needs, identifying key risks and their corresponding controls is the next essential step.

This fieldwork phase requires gathering information on controls, measurement processes, and remedial actions. Capture your findings in writing to build a compliant 

. Keep communicating with your audit "clients" so everyone understands your objectives and actions.

For enterprise organizations with complex control environments, prioritize controls that address multiple risks or support critical business processes. This risk-based approach ensures audit resources focus on controls with the greatest impact on business objectives.

5. Be proactive in audit reporting and documentation

 is your opportunity to demonstrate value to stakeholders. Best practice internal audit management makes report collation an integral part of fieldwork, not an afterthought. Don't wait until you've finished data-gathering to start writing; you'll forget crucial details and nuances that inform rounded audit reports.

Share findings as you develop them. This gives audited teams and stakeholders insight into what's coming and prevents unpleasant surprises in final reports. It also creates opportunities for management to begin remediation before formal report issuance.

Board expectations for internal audit reporting have evolved significantly. 

 2025 Audit Committee Practices Report reveals that only 31% of audit committee respondents expressed satisfaction with their meeting performance, down from 35% the previous year, indicating growing dissatisfaction with traditional reporting approaches.

Transform your reporting from compliance checklists to strategic intelligence. Board members and executives don't need exhaustive control testing details — they need insights about what the audit findings mean for business objectives. Connect control deficiencies to business impact:

How does this weakness affect transaction readiness?

What does this pattern suggest about operational efficiency?

Where do control failures create strategic vulnerabilities?

Use data visualization and dashboards to make audit insights accessible. Heat maps showing control effectiveness across business units, trend analyses revealing deteriorating controls, and benchmarking data comparing your organization to peers transform static audit reports into actionable intelligence.

6. Take a more agile and advisory approach

Internal audit management traditionally followed rigid processes with set deadlines and parameters. Introducing agility — borrowing from software development methodologies — gets stakeholders on board in ways that annual audits cannot.

Position your internal audit team as business partners who act in a consulting capacity to help business units continuously improve 

. This approach gains respect and support from audited teams while demonstrating that everyone works toward the same goals.

Agile auditing breaks large audit projects into sprints with defined deliverables. Instead of six-month audits culminating in massive reports, conduct two-week sprints that deliver specific insights management can act upon immediately. This approach provides faster value delivery and creates opportunities to adjust audit scope as you learn more about the business environment.

Hold daily stand-ups during audit fieldwork to identify blockers and maintain momentum. Conduct sprint retrospectives to continuously improve your audit approach based on what worked and what didn't.

7. Prioritize cybersecurity and emerging technology risk audits

As cyber threats evolve and technology adoption accelerates, internal audit must expand traditional financial controls focus to address cybersecurity, 

 and technology risk management. These areas represent some of the most significant risks facing mid-market and enterprise organizations today.

Develop specialized capabilities for auditing IT general controls, cybersecurity frameworks and emerging technology implementations. This doesn't mean every auditor needs deep technical expertise — but your function needs access to these skills through hiring, training, or co-sourcing arrangements.

Collaborate with IT security teams to provide an independent assessment of control effectiveness. Your role isn't to manage cybersecurity but to provide assurance that management's approach adequately addresses the risks. Evaluate whether cybersecurity programs align with industry frameworks, test control effectiveness and assess whether the organization can detect and respond to incidents.

For AI and emerging technologies, focus on governance frameworks, ethical considerations and risk management processes. How does management assess AI risks? What controls prevent bias or unintended consequences? How does the organization ensure AI implementations comply with evolving regulations?

Transform your internal audit from compliance-focused to strategically valuable with AI-powered insights and automated risk management. 

Modernize your audit approach

8. Build advanced data analytics capabilities for 100% audit coverage

Moving beyond sample-based testing to comprehensive data analysis represents one of the most significant opportunities for internal audit transformation. 

 enable you to examine 100% of transactions, identify anomalies that samples might miss, and provide continuous assurance rather than point-in-time testing.

"Trust is the number one thing. Once you have trust that the executive teams believe in the data, believe in the risk you are identifying, then you can have fulsome conversations, you can create change," says Tom Keaton, former Director of Internal Audit at Crown Castle.

Implement data analytics across your audit process:

Use analytics during planning to identify high-risk areas

Employ continuous monitoring during execution to flag exceptions

Leverage visualization tools during reporting to make findings accessible to non-technical stakeholders

Build data analytics competency within your team through training and recruitment. Partner with IT and data science functions to access enterprise data sources and develop analytics scripts that automate routine testing. This frees your skilled auditors to focus on investigation and advisory work rather than manual data gathering.

9. Establish comprehensive quality assurance and performance management

The 2025 Global IIA Standards introduce enhanced requirements for internal audit quality assurance and performance assessment. Organizations must now establish quality assurance programs that include both internal assessments and external quality assessments at least every five years.

Implement ongoing monitoring of audit activities to ensure consistency, accuracy, and adherence to professional standards. This includes peer reviews of audit work papers, supervisory reviews of significant judgments and periodic assessments of audit methodology effectiveness.

Develop balanced scorecards that measure internal audit performance across multiple dimensions: stakeholder satisfaction, audit plan completion, cycle time efficiency, value of recommendations implemented and coverage of high-risk areas. These metrics demonstrate audit function effectiveness to boards and executive leadership while identifying improvement opportunities.

10. Leverage AI-powered audit management technology

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