Rising Risk Complexity Outpaces Organizations’ Strategic Readiness Finds New AICPA & North Carolina State University Study

Organizations are grappling with an unprecedented surge in the complexity, interconnectedness, and unpredictability of risks, yet a significant majority continue to lag in integrating robust risk management into their core strategic decision-making processes. This stark reality is illuminated by the latest findings from "The 2026 State of Risk Oversight: An Overview of Enterprise Risk Management Practices," a comprehensive report jointly released by the American Institute of CPAs (AICPA) and the Enterprise Risk Management (ERM) Initiative at North Carolina State University. This marks the 17th iteration of this crucial annual study, underscoring a persistent and growing challenge for businesses across various sectors.

The 2026 report, which surveyed 331 senior executives and board-level leaders, reveals a striking consensus: 69% of respondents believe the volume and complexity of risks confronting their organizations have escalated significantly over the past five years. This perception of heightened risk is further amplified by a sobering statistic: only 11% of these leaders feel their organization’s current risk management process provides a distinct strategic or competitive advantage. This indicates a substantial gap between the perceived increase in risk exposure and the perceived effectiveness of current risk management strategies in driving superior business outcomes.

The findings strongly suggest a widening chasm between the escalating levels of risk and organizations’ capacity to translate risk intelligence into actionable, value-generating business decisions. While many entities have demonstrably expanded their governance structures and oversight practices in response to growing concerns, the report indicates that risk management efforts remain predominantly focused on operational efficiencies and compliance mandates, often at the expense of proactively addressing emerging strategic threats. This can leave organizations vulnerable to unforeseen disruptions that could fundamentally alter their market position or long-term viability.

Key Findings from the 2026 State of Risk Oversight Report

The study’s detailed analysis highlights several critical areas of concern and opportunity for organizations striving to enhance their risk oversight capabilities:

• Increased Risk Volatility and Interconnectedness: Respondents overwhelmingly reported a rise in the complexity and volatility of risks. This includes a growing awareness of how interconnected various risk factors are, meaning a single event can trigger a cascade of other issues across different operational areas.
• Strategic Risk Management Lag: Despite the increase in risk, the integration of risk management into strategic planning remains a significant challenge. Many organizations are still treating risk as a tactical or compliance issue rather than a strategic imperative that can inform competitive advantage.
• Limited Competitive Advantage from Risk Management: The low percentage of organizations viewing risk management as a source of competitive advantage suggests that current practices are not effectively leveraged to identify opportunities or mitigate threats that could differentiate them in the marketplace.
• Focus on Operational and Compliance Risks: The report indicates a persistent tendency to prioritize risks related to day-to-day operations and regulatory compliance. While essential, this focus can overshadow the proactive identification and management of longer-term strategic risks, such as disruptive technologies, geopolitical shifts, or evolving customer demands.
• Gaps in Risk Communication and Decision-Making: The disconnect between risk intelligence and strategic decision-making points to potential shortcomings in how risk information is communicated, analyzed, and utilized by leadership.

Evolving Expectations for Board and Executive Engagement

The report also underscores a significant trend: increasing expectations from boards of directors, audit committees, regulators, and other key stakeholders for enhanced executive engagement in risk oversight. This pressure is leading to a more formal and structured approach to risk management within many organizations. Evidence of this includes:

• Appointment of Chief Risk Officers (CROs): A growing number of organizations are creating dedicated leadership roles for risk management, signaling a commitment to a more centralized and strategic approach.
• Establishment of Management-Level Risk Committees: The formation of committees specifically tasked with overseeing risk at the management level indicates a move towards more systematic risk identification, assessment, and mitigation.
• Formalization of Board Oversight Responsibilities: Boards are increasingly formalizing their role in risk oversight, moving beyond informal discussions to more structured review processes and the establishment of clear accountability frameworks.

However, the study also points out that many organizations still rely on informal discussions and anecdotal evidence rather than robust, data-driven risk reporting to inform strategic decisions. This reliance on less rigorous methods can lead to incomplete risk assessments and potentially flawed strategic choices. The study, therefore, suggests that while progress has been made in developing governance structures and risk management processes over the past 17 years, there remain substantial opportunities to elevate risk maturity, improve the clarity and impact of risk communication, and more effectively harness risk insights to guide strategic direction.

AICPA Launches Council on AI Tax Risk with Former IRS Commissioner

In a significant development aimed at navigating the rapidly evolving landscape of artificial intelligence (AI) in the tax domain, the American Institute of CPAs (AICPA) has partnered with former IRS Commissioner Danny Werfel to spearhead a new initiative. This collaborative effort has led to the establishment of the Council on AI Tax Risk (CART). CART brings together a distinguished group of leaders from the accounting, legal, technology, government, and academic sectors. The initiative is dedicated to advancing practical, responsible approaches to the integration and application of AI within tax administration and tax practice. Prominent participating organizations include the National Association of Enrolled Agents (NAEA) and the Federation of Tax Administrators (FTA), among others, highlighting a broad-based commitment to addressing AI’s impact on tax services.

The formation of CART is a direct response to the accelerating pace at which AI is transforming tax-related functions. New AI-powered tools are rapidly reshaping how tax compliance, administration, and advisory services are delivered. As the adoption of these technologies accelerates, critical questions surrounding information integrity, accountability, and robust risk management are coming to the forefront of discussions among professionals and policymakers alike.

The overarching objectives of the Council on AI Tax Risk are multi-faceted and designed to foster a proactive and informed approach to AI in taxation:

• Fostering Collaboration and Knowledge Sharing: CART aims to create a neutral forum for stakeholders to share insights, best practices, and emerging challenges related to AI in tax. This collaborative environment is crucial for developing comprehensive solutions.
• Identifying and Assessing Emerging Risks: The council will focus on proactively identifying potential risks associated with AI technologies in tax, such as data bias, algorithmic errors, cybersecurity vulnerabilities, and ethical considerations. This includes assessing the potential impact of these risks on taxpayers, tax professionals, and tax authorities.
• Developing Practical Guidance and Tools: A key objective is to develop practical guidance, frameworks, and tools that can assist tax professionals and organizations in understanding and managing AI-related risks. This may include best practice recommendations, checklists, and educational resources.
• Promoting Responsible AI Adoption: CART seeks to champion the responsible and ethical adoption of AI in tax, ensuring that these technologies are used in ways that enhance efficiency, accuracy, and fairness while mitigating potential harms.

The Council on AI Tax Risk is scheduled to convene regularly throughout the year. These meetings will serve as a platform for ongoing dialogue on emerging AI risks within the tax ecosystem and for identifying opportunities to strengthen risk management practices across the entire tax landscape. CART’s long-term vision includes refining existing risk frameworks, developing comprehensive guidance documents, creating valuable tools and resources, and establishing industry-wide best practices to support organizations in their journey toward responsibly adopting AI technologies.

AICPA Seeks Modifications to CAMT Guidance for Financially Troubled Companies

The AICPA has formally submitted a letter to the Department of Treasury and the Internal Revenue Service (IRS) proposing specific modifications to the interim guidance concerning the Corporate Alternative Minimum Tax (CAMT). The recommendations are particularly focused on clarifying and improving the application of CAMT rules for financially troubled companies, addressing Notices 2025-46 and 2026-07, which pertain to the CAMT’s impact on domestic corporate transactions, struggling businesses, and consolidated tax groups.

The AICPA’s detailed recommendations aim to address potential ambiguities and unintended consequences of the current guidance, ensuring a more equitable and practical application of the tax law for companies facing financial distress. The specific areas of concern and proposed improvements include:

I. Treatment of Cancellation of Debt Income (CODI)

The AICPA has urged for clarity regarding the treatment of Cancellation of Debt Income (CODI) for financially troubled companies under the CAMT. Specifically, the organization recommends:

• Clarification on the Scope of CODI: The letter seeks to ensure that CODI arising from restructurings or workouts of financially distressed entities is not inadvertently subjected to the CAMT in a manner that could impede recovery efforts.
• Alignment with Existing Tax Principles: Recommendations include aligning the CAMT treatment of CODI with established tax principles that generally provide relief or deferral for such income when a company is in financial distress.
• Consideration of Insolvency and Bankruptcy: The AICPA advocates for specific provisions that would account for the unique circumstances of CODI when it arises in connection with insolvency or bankruptcy proceedings, where the economic reality is often one of financial distress rather than a clear economic gain.

II. Insolvency Exclusion

A critical recommendation from the AICPA relates to the application of the insolvency exclusion under the CAMT. The organization proposes:

• Broadening the Application of the Insolvency Exclusion: The AICPA suggests that the insolvency exclusion should be interpreted broadly to encompass situations where a company, though not yet in formal bankruptcy, is nonetheless demonstrably insolvent or in severe financial distress.
• Defining Insolvency Thresholds: The letter calls for clear, objective criteria or safe harbors to define when a company meets the threshold for insolvency for CAMT purposes, thereby providing certainty for taxpayers.
• Preventing Double Taxation: The recommendations aim to prevent situations where financially distressed companies might face a double burden of tax, first through the realization of CODI and then through the imposition of CAMT, thereby hindering their ability to restructure and survive.

III. Bankruptcy Exclusion

The AICPA also submitted recommendations concerning the bankruptcy exclusion, advocating for:

• Clearer Definitions and Scope: The letter seeks to clarify the scope and application of the bankruptcy exclusion, ensuring it effectively shelters income and book-tax differences arising during formal bankruptcy proceedings from CAMT.
• Interplay with Other Provisions: Recommendations include ensuring that the bankruptcy exclusion operates harmoniously with other relevant tax provisions and does not create unintended negative consequences for reorganized entities.
• Addressing Reorganization-Related Income: The AICPA suggests that income or adjustments directly related to the process of corporate reorganization under bankruptcy protection should be appropriately excluded from CAMT calculations.

IV. Emergence from Bankruptcy

Finally, the AICPA has put forth recommendations regarding the period following a company’s emergence from bankruptcy:

• Transition Period Relief: The letter proposes that financially distressed companies emerging from bankruptcy should receive a reasonable transition period where certain income or adjustments that were excluded during bankruptcy are not immediately subjected to CAMT.
• Preventing Immediate Tax Burdens: The aim is to prevent the imposition of immediate CAMT burdens upon emergence that could jeopardize the fragile financial stability of a reorganized entity.
• Facilitating Long-Term Recovery: By providing appropriate relief during this critical post-bankruptcy phase, the AICPA believes that companies will be better positioned for long-term recovery and sustained economic contribution.

These recommendations underscore the AICPA’s commitment to ensuring that tax policies, particularly complex ones like the CAMT, are implemented in a manner that supports economic stability and does not unduly burden companies facing financial challenges.

AICPA & CIMA’s CGMA Finance Leadership Program Earns Gold Brandon Hall Excellence Award

AICPA & CIMA, operating collectively as the Association of International Certified Professional Accountants, has achieved a significant recognition for its commitment to advancing finance professional development. The association has been honored with a Gold Brandon Hall Group HCM Excellence Award in the category of Best Association Professional Development Program for its innovative CGMA Finance Leadership Program (FLP). This prestigious award celebrates organizations that demonstrate excellence in creating and delivering learning solutions that yield measurable outcomes, foster professional growth, and enhance workforce readiness in the global business environment.

The CGMA Finance Leadership Program is a pioneering digital-first pathway designed to equip finance professionals with the skills and competencies necessary to excel in today’s dynamic and increasingly complex business landscape. The program uniquely blends guided learning modules, practical real-world business application exercises, and integrated assessments to cultivate a comprehensive skill set encompassing technical accounting knowledge, strategic thinking, and leadership capabilities.

Since its inception in 2017, the CGMA FLP has made a substantial impact, supporting over 25,000 learners worldwide in their pursuit of the Chartered Global Management Accountant (CGMA) designation. The CGMA is a globally recognized credential held by more than 140,000 finance professionals, signifying their expertise in management accounting and their ability to drive business success.

The Brandon Hall Group Gold Award is not merely a testament to the program’s instructional design and content quality; it also reflects the growing global demand for flexible, technology-enabled learning experiences. These experiences are crucial for professionals seeking to acquire the advanced technical, strategic, and leadership capabilities required to navigate the rapidly evolving finance profession. The CGMA FLP exemplifies this trend by offering a modern, accessible, and effective approach to professional development.

To create and continuously enhance the FLP learning platform, AICPA & CIMA partnered with Studion, a specialized technology services firm renowned for its expertise in designing and developing highly engaging digital learning experiences. This collaboration has been instrumental in ensuring the program remains at the forefront of educational technology and pedagogical innovation. The ongoing efforts of AICPA & CIMA’s learning, assessment, and product development teams are dedicated to evolving the program to meet the continuously changing needs of finance professionals across the globe.

CPA.com Announces Keynote Speakers for 2026 Digital CPA Conference

The accounting profession is undergoing a profound transformation, fueled by the rapid advancements in artificial intelligence and other emerging technologies. These innovations are not only reshaping operational models but also creating new avenues for firms to deliver enhanced value to their clients. In anticipation of its 15th anniversary in 2026, the Digital CPA (DCPA) Conference is poised to bring together a distinguished assembly of progressive practitioners, pioneering technology innovators, and leading accounting firm executives. The conference, scheduled to take place from December 6-9, 2026, will serve as a vital platform for exploring the strategies, technologies, and capabilities that will position firms for sustained long-term success in this new era.

The 2026 edition of the conference, branded as DCPA26, is jointly hosted by CPA.com and the American Institute of CPAs (AICPA). It will be held at the Gaylord Pacific Resort & Convention Center in San Diego, with a live online participation option also available. This year’s overarching theme, "Vision to Velocity," encapsulates the critical shift from merely envisioning transformation to actively implementing and accelerating it. By bringing together the right blend of strategic insights, cutting-edge technology, and skilled talent, firms can effectively translate innovative ideas into tangible actions, thereby expediting progress and generating enduring value for their clients.

The comprehensive three-day program is meticulously designed to offer attendees a wealth of knowledge and practical application. It will feature over 40 sessions spanning key areas such as audit and assurance, client advisory services (CAS), and business consulting. An expanded tax track will provide in-depth coverage of tax-related innovations and strategies. More than 60 distinguished speakers are slated to share their expertise, offering actionable insights that firms can readily apply across their organizations. Beyond the educational sessions, attendees will have ample opportunities for professional networking, including dedicated time at the resource center, engaging peer-to-peer discussions during networking events and receptions, and roundtable sessions. Furthermore, over 60 leading technology companies specializing in tax, audit, CAS, and practice management solutions will be present, offering attendees a firsthand look at the latest innovations.

The conference will feature several prominent keynote speakers who are at the forefront of understanding and shaping the forces transforming the accounting profession. These leaders will provide critical perspectives on how professionals and firms can cultivate the capabilities needed to thrive amidst rapid and often disruptive change.

Keynote speakers include:

• Barry Melancon, Chairman at Baker Tilly International, and Nitin Mittal, Head of Global AI at Deloitte. These industry leaders will delve into how accounting firms can strategically harness the power of data and AI-driven transformation. Their discussion will focus on leveraging these technologies to achieve a significant competitive advantage, enable more proactive strategic decision-making, and ultimately create new and enhanced value propositions for clients.
• Erik Brynjolfsson, a distinguished Senior Fellow at the Stanford University Institute for Human-Centered Artificial Intelligence and Director of the Stanford Digital Economy Lab. Brynjolfsson’s address will explore the profound ways in which AI is reshaping the future of work. He will articulate why strategically reorganizing work processes around the complementary capabilities of humans and AI can unlock unprecedented levels of productivity and create new opportunities for growth and innovation.
• Rachel Wilson, Head of Wealth Management Data Security and Infrastructure Risk at Morgan Stanley. Wilson will provide critical insights into the evolving cyberthreat landscape. Her presentation will focus on equipping businesses with the knowledge and strategies necessary to protect themselves against increasingly sophisticated and pervasive cyberattacks, a paramount concern in today’s digital economy.
• Erik Asgeirsson, President and CEO of CPA.com, alongside other leading practice innovators. Asgeirsson and his co-presenters will explore the practical strategies and innovative approaches that firms are adopting to accelerate their digital transformation journeys. Their session will highlight how firms are advancing innovation and building robust AI-enabled capabilities across client advisory services, audit, and tax functions to drive sustainable long-term growth and success.

For further details regarding the DCPA26 conference, including the complete speaker lineup and access to on-demand sessions, interested parties are encouraged to visit the official conference website at www.digitalcpa.com.