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Business Risks Climb Amid Global Policy Changes and Geopolitical Uncertainty, warn Chief Internal Auditors
A new Chartered Institute of Internal Auditors’ business poll reveals that sweeping global policy changes are fuelling a rise in business-critical risks
As governments around the world respond to growing geopolitical, social and macroeconomic uncertainty, Chief Internal Auditors are warning that global policy changes are having a profound and negative impact on the risk landscape facing their businesses.
New research from the Chartered Institute of Internal Auditors, based on a survey of almost 900 Chief Internal Auditors across the UK and Europe, has revealed that changes in laws and regulations are now the single most impacted area by recent global policy changes, cited by nearly two-thirds (64%) of respondents. This comes amid a backdrop of rising global trade and geopolitical tensions, including as a result of the re-election of Donald Trump and renewed US tariff threats, which are driving a surge in business risk.
Following a wave of recent cyberattacks targeting major UK retailers, cybersecurity has emerged as the second most impacted risk from rising geopolitical uncertainty-cited by half (50%) of Chief Internal Auditors. This reflects an increase in the number of cyberattacks instigated by hostile states like China, Iran and Russia. Market volatility, shifting consumer behaviour, and intensifying competition were also flagged by 46% of respondents, as global policy changes shape consumer spending choices. Notably, some European consumers are turning away from brands associated with the new US Administration—evidenced by Tesla’s plummeting sales—in favour of companies whose owners are perceived to uphold stronger ethical and moral standards.
The top five risks most negatively impacted by global policy changes related to macroeconomic, social and geopolitical uncertainty are as follows:
- Change in laws and regulations (64%)
- Cybersecurity and data security (50%)
- Market changes, competition and changing consumer behaviour (46%)
- Digital disruption, new technology and AI (46%)
- Climate change, biodiversity and environmental sustainability (43%)
The findings form part of the Chartered Institute of Internal Auditors’ flagship annual research project, Risk in Focus 2026, with this year’s report marking its tenth anniversary. The report provides a forward-looking view of the top risks facing organisations across Europe.
Anne Kiem OBE, Chief Executive of the Chartered Institute of Internal Auditors, said:
“The message from our research is clear: global policy changes—whether related to trade, regulation, or climate change—are having a direct and growing impact on the risks businesses must manage. In an increasingly volatile world, internal auditors serve as a vital source of assurance against the multitude of threats organisations face. We urge business leaders to work closely with their internal audit teams to gain assurance that internal control and risk management frameworks are agile, responsive, and robust in this fast-changing environment. It is also essential that boards ensure internal audit functions are properly resourced to carry out their roles effectively.”
The survey included the views from Chief Internal Auditors in Austria, Belgium, France, Germany, Greece, Hungary, Ireland, Italy, Luxembourg, The Netherlands, Norway, Spain, Sweden, Switzerland and the UK.
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Notes to editors
Risk in Focus 2026 question on government policy changes related to macroeconomic, social and geopolitical uncertainty: Significant government policy changes related to macroeconomic, social and geopolitical uncertainty are impacting businesses. Please rank the top 5 risks in your location that you think are negatively impacted.
About the research
The research was commissioned as part of Risk in Focus 2026 and carried out over May/June 2025. The part of the research that focussed on understanding the business risks negatively impacted by government policy changes related to macroeconomic, social and geopolitical uncertainty was based on a quantitative survey of 879 Chief Internal Auditors from 15 European countries. Countries represented included: Austria, Belgium, France, Germany, Greece, Hungary, Ireland, Italy, Luxembourg, The Netherlands, Norway, Spain, Sweden, Switzerland and the UK. The full Risk in Focus 2026 report and survey findings will be published in September 2025.
The top five risks for Risk in Focus 2026 – Government Policy Changes Question, were:
- Change in laws and regulations (64%)
- Cybersecurity and data security (50%)
- Market changes, competition and changing consumer behaviour (46%)
- Digital disruption, new technology and AI (46%)
- Climate change, biodiversity and environmental sustainability (43%)
All percentages have been rounded up or down to the nearest percentage point. The full spreadsheet/data set for the question is available to download here.
About the Chartered Institute of Internal Auditors
The Chartered Institute of Internal Auditors (Chartered IIA) is the professional body dedicated exclusively to championing and supporting the vital work of internal auditors in the UK and Ireland since 1948. It is the leading voice for over 10,000 internal audit professionals in organisations spanning all sectors of the economy. The Chartered IIA champions and promotes the valuable contribution its members make to good corporate governance, strong risk management processes and a rigorous internal control environment, ensuring the long-term success of all organisations.