Audit at the Edge: Governing AI Before It Governs You
Why IRM, not legacy tools, is the board’s best defense against tech-driven risk
Artificial intelligence is no longer a side project buried in IT. It’s now embedded in decision-making processes across finance, operations, marketing, and customer service. From algorithmic underwriting to autonomous workforce tools, AI is transforming how businesses operate—and how they fail. Yet for many organizations, Internal Audit remains stuck in the past: buried in compliance checklists, siloed in function, and reliant on legacy Governance, Risk, and Compliance (GRC) systems incapable of keeping pace.
This isn’t just a technical shortfall. It’s a strategic governance failure that exposes boards and executive leadership to reputational damage, regulatory sanctions, and competitive decline. It’s also entirely preventable—if Internal Audit is elevated through modern Integrated Risk Management (IRM) capabilities and specifically aligned with the IRM Navigator™ Framework.
The IRM Navigator™ Framework: A Strategic Model for Resilience
At the heart of today’s risk transformation is the IRM Navigator™ Framework, a research-backed model developed by Wheelhouse Advisors to align organizations around a unified approach to risk. It replaces the narrow, checklist-driven lens of GRC with a broader, future-ready architecture—one that empowers internal audit, unites risk functions, and informs strategic decision-making.
The IRM Navigator™ Framework is anchored around four core risk domains—each representing a critical segment of the modern IRM technology market:
Enterprise Risk Management (ERM)
Aligns strategic risk with business objectives and governance. ERM addresses high-level threats to organizational performance, such as geopolitical shifts, economic instability, and reputational risks.
Operational Risk Management (ORM)
Focuses on risks related to internal processes, people, and systems. ORM covers supply chain disruptions, third-party risks, and process failures—issues increasingly exacerbated by automation and global interdependencies.
Technology Risk Management (TRM)
Now the fastest-growing segment, TRM deals with cybersecurity threats, IT resilience, and AI governance. This includes risks arising from machine learning models, cloud infrastructure, digital identity management, and data privacy.
Governance, Risk, and Compliance (GRC)
Ensures compliance with laws and regulations, but within the IRM Navigator™ Framework, GRC becomes one component of a broader ecosystem—no longer the sole lens for managing risk.
Each domain is supported by enabling technologies, processes, and metrics that feed into a centralized risk intelligence layer—providing visibility and insight across the enterprise.
Internal Audit’s Role: From Control Checker to Strategic Operator
By aligning with the IRM Navigator™ Framework, Internal Audit evolves from a reactive function to a strategic operator. Here’s what that transformation looks like:
In TRM: Internal audit becomes the governance engine for AI deployments, cloud security, and digital identity programs—monitoring not only controls, but ethical AI use, model performance, and third-party tech risk.
In ORM: IA tests the robustness of operational resilience programs, supply chain contingencies, and incident response plans—ensuring business continuity amid digital disruptions.
In ERM: IA validates that strategic risks are being continuously assessed against changing conditions, enabling better board-level oversight and agile pivoting.
In GRC: IA leverages automation to streamline audits, reduce duplication, and ensure ongoing compliance in a rapidly shifting regulatory environment.
In all cases, IRM technology—not legacy GRC systems—is what enables this shift. It empowers IA to integrate risk data across domains, automate routine processes, apply predictive analytics, and deliver meaningful insight to executives and the board.
Research Confirms: TRM Is Leading IRM’s Growth
The urgency of this shift is underscored by Wheelhouse Advisors’ newly released 2025 IRM Navigator™ TRM Report, which offers deep market intelligence on the most dynamic segment of the IRM space. According to the report:
The IRM market is projected to grow from $61.6 billion in 2025 to $134.0 billion by 2032, reflecting an 11.7% CAGR.
Technology Risk Management (TRM) is the fastest-growing segment, expected to increase from $25.5 billion to $59.8 billion, at a 12.9% CAGR.
62% of enterprises are already investing in AI-powered security automation, and regulatory mandates like SEC cyber rules and NIS2 are driving the need for automated compliance and AI risk governance.
These findings are echoed in the IRM Navigator™ TRM Vendor Compass, which categorizes the market’s top solution providers into:
Integrators – Full-stack TRM platforms that seamlessly connect to broader IRM systems.
Accelerators – Vendors advancing the use of AI, automation, and cloud-native security.
Pace Setters – Niche innovators targeting specific industries or functional use cases.
Read the full report and access vendor evaluations here: www.wheelhouseadvisors.com/irm-navigator-research
Why Boards Must Move Beyond GRC
As AI, cyber threats, and regulatory complexity escalate, boards can no longer afford to let internal audit operate with outdated tools. The KPMG Risk & Resilience Survey found that:
71% of companies lack integrated risk visibility
66% cite cultural resistance and inadequate resources as major barriers
Only 64% incorporate risk into strategic decisions
These shortcomings aren’t just operational—they’re governance failures. Internal Audit must be empowered to see across silos, assess technology risk in real time, and deliver forward-looking assurance. That means:
Replacing legacy GRC systems with IRM platforms built for agility, integration, and automation
Embedding the IRM Navigator™ Framework across business units to unify oversight and resilience
Elevating Internal Audit to act not just as a control checker, but as a strategic sentinel for AI and digital risk
Final Word: Internal Audit Is the Last Line of Defense—Modernize It
Internal Audit is the only function positioned to validate controls across all three lines of defense. But without the IRM Navigator™ Framework and the right technology, it’s flying blind in a world where AI errors, cyber breaches, and regulatory lapses can bring an enterprise to its knees.
Board members must ask:
Is our audit function ready for the next wave of AI disruption?
Are we still managing risk with yesterday’s tools, while deploying tomorrow’s technology?
If the answer is unclear, the IRM Navigator™ offers a clear path forward—and the time to act is now.
Further Reading & Resources
How Internal Audit Can Govern AI Risks and Promote Compliance, EY, March 2025
Bridging the Resilience Gap: Why Integrated Risk Management Outperforms Legacy GRC Solutions, The RiskTech Journal, March 2025
2025 IRM Navigator™ TRM Report, Wheelhouse Advisors, March 2025
Technology Risk in 2025 Press Release, Wheelhouse Advisors, March 20, 2025
