Research commissioned by the Chartered Institute of Internal Auditors has found that ongoing economic uncertainty means that financial, liquidity and insolvency risks are now the biggest concern for businesses.

Its latest Risk in Focus, published today, polled 800 chief internal auditors across Europe.

Respondents reported the top five risks as:

1. Financial, liquidity and insolvency (62%)
2. Market changes, competition and changing consumer behaviour (60%)
3. Macroeconomic and geopolitical uncertainty (50%)
4. Human capital, diversity, talent management and retention (48%)
5. Supply chain, outsourcing and third party risks (43%)

Last year financial, liquidity and insolvency risk ranked well outside the top five risks to businesses, trumped by other key risks including cyber security, changes in laws and regulations, and digital disruption.

Anne Kiem OBE, chief executive of the Chartered Institute of Internal Auditors said: “This poll demonstrates that ongoing economic uncertainty means that businesses continue to face strong headwinds with financial, liquidity and insolvency concerns now front and centre.

"This research underlines the need for boards to collaborate with their internal audit functions to ensure they have identified, managed and mitigated the myriad of business-critical risks they now face. Internal audit has an important role to play in supporting the board in this.

"The more risky, uncertain, and volatile environment businesses are now operating in, means that planned reform to the audit and corporate governance framework is more urgent than ever. We urge the government to publish the statutory instruments for Resilience Statements and Audit and Assurance Policies without further delay, as well as ensure there is a commitment to an Audit Reform Bill in the King’s Speech. These reforms are vital to enhancing the resilience of our economy.”

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