How to Succeed With Risk and Controls in 2026

Risk and internal controls are entering a new phase. By 2026, organizations will be operating in an environment shaped by increased regulatory scrutiny, ongoing digital transformation, and rising expectations from boards, auditors, and regulators. At the same time, many teams are still struggling with manual processes, fragmented tools, and control frameworks that do not scale with the business.

Succeeding with risk and controls in 2026 is not about adding more documentation or reacting faster at year-end. It is about building a control environment that is operational, digital, scalable, and ready for what comes next.

Here are the key principles organizations should focus on now to be prepared.

1. Operationalize and Digitize Risk and Controls

One of the biggest challenges organizations face is that risk and controls often live on paper or in static documentation. Policies exist, risks are described, and controls are defined, but they are not embedded into day-to-day operations.

To succeed in 2026, risk and controls must be operationalized. That means:

• Controls are linked directly to business processes
• Ownership and accountability are clearly defined
• Evidence is collected as part of normal workflows
• Control performance is monitored continuously, not just reviewed annually

Digitization is a critical enabler here. Cloud-based control environments allow organizations to move away from theoretical frameworks and toward living software systems that reflect how the business actually operates. This reduces manual effort, increases transparency, and makes it easier to demonstrate control effectiveness when it matters.

2. Build for Scale From Day One

Risk and control frameworks often start small, then struggle as the organization grows. New entities are added, processes evolve, and regulatory requirements expand. What once worked becomes slow, inconsistent, and difficult to manage.

A successful 2026 risk and control strategy assumes growth and complexity from the beginning. Scalable risk and control environments should:

• Support multiple entities, processes, and control owners
• Allow standardization where possible, without losing local relevance
• Provide consistent reporting across the organization
• Avoid manual work that grows linearly with the size of the business

Scalability is not just a technical requirement. It is a strategic one. Organizations that cannot scale their control environment will always be reacting, rather than proactively managing risk.

3. Stay Flexible Across Markets and Regulations

Operating across multiple markets means dealing with different regulatory requirements, risk profiles, and business practices. A rigid, one-size-fits-all approach to risk and controls rarely works in this reality.

Flexibility is key. Organizations need control frameworks that can adapt to:

• Local regulatory requirements
• Different risk tolerances across markets
• Changes in legislation or guidance
• New business models and operating structures
• Support local risk & control ownership, where needed

This does not mean losing consistency or control. The goal is a flexible foundation, where core principles and structures remain the same, but controls can be adjusted and extended without starting from scratch.

In 2026, flexibility will be a defining factor between organizations that keep up and those that fall behind.

4. Implement Quickly and Decisively

Auditors and regulators are not concerned with implementation timelines. They focus on outcomes, not intentions. From their standpoint, controls must be in place and operating effectively in practice to be considered defensible.

Lengthy implementations increase risk. They create periods where controls are unclear, evidence is fragmented, and responsibilities are blurred. In an environment of increasing scrutiny, this is a risk organizations cannot afford.

Successful organizations focus on:

• Rapid implementation of core control frameworks
• Clear ownership and accountability from day one
• Incremental improvement, rather than waiting for perfection
• Immediate visibility into control status and gaps

Speed does not mean cutting corners. It means prioritizing what matters most and ensuring that essential controls are in place and working as early as possible.

5. Move Away From Excel for Risk and Controls

Excel has been a long-standing tool in risk management and internal control work. While it is flexible and familiar, it comes with significant limitations.

Common challenges include:

• Version control issues
• Lack of audit trails
• Manual updates and reconciliations
• Difficulty scaling across teams and entities

As expectations increase, spreadsheets become harder to defend. They make it difficult to demonstrate consistency, accountability, and real-time insight.

Moving away from Excel is not about removing flexibility. It is about gaining control, traceability, and confidence in the data that supports risk and control decisions.

6. Plan With AI in Mind

Artificial intelligence is already influencing how organizations manage data, identify patterns, and prioritize actions. By 2026, AI will play an even larger role in risk and control environments.

Forward-looking organizations are already preparing by:

• Structuring risk and control data in a consistent, digital format
• Ensuring high-quality, reliable input data
• Creating transparency around control performance and outcomes
• Building foundations that allow AI-driven insights in the future

AI does not replace sound judgment or governance. Instead, it enhances visibility, highlights emerging risks, and supports better decision-making. Organizations that fail to prepare their control environments for AI will struggle to take advantage of these capabilities when they become standard.

Looking Ahead to 2026

Risk and internal controls are evolving quickly, shaped by new regulations, technology, and changing expectations from boards and regulators. To better understand what lies ahead, we are currently working on a 2026 Trends & Predictions report that brings together perspectives from practitioners and industry experts across risk, compliance, financial controlling, and tax. The report will explore the challenges organizations face today and the shifts that will define how risk and controls are managed in the years to come.

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