Group 1: Core Insights - The 2025 Asia-Pacific Risk Focus Report identifies digital disruption, market competition, and climate change as the three key forces reshaping the regional business ecosystem [1][16] - Internal audit functions are transitioning from traditional risk gatekeepers to important strategic advisors for corporate upgrades [1][5] Group 2: Digital Disruption - Currently, 36% of Asia-Pacific companies list digital disruption as one of their top five risks, expected to rise to 55% in the next three years, making it the third-largest risk area [2][19] - AI technology is being widely adopted across various sectors, enabling companies to shorten product cycles and optimize production processes, but it also increases cybersecurity risks and compliance dilemmas [2][5] - Internal audit departments are adapting by updating audit plans regularly, dedicating about 20% of their time to address ad-hoc projects related to digital transformation [2][5] Group 3: Market Competition - 49% of companies in the Asia-Pacific region currently consider market changes and competition as one of their top five risks, with a slight decrease to 44% expected in the next three years [3][19] - The manufacturing sector, which comprises 30% of the surveyed companies, is particularly sensitive to market fluctuations, intensifying competitive pressures [3][5] - Companies are leveraging digitalization to respond to market demands, with examples including a media group transitioning to digital content creation and a hotel using AI for dynamic pricing [3][5] Group 4: Climate Challenges - 26% of Asia-Pacific companies currently view climate change as a major risk, projected to increase to 47% in the next three years, making it the fourth-largest risk area [4][19] - Regulatory pressures are driving companies to integrate environmental requirements into their operations, with new regulations emerging globally [4][5] - Internal audit functions are taking on the role of "gatekeepers" to ensure the accuracy of sustainability reports and evaluate the execution of environmental plans [4][5] Group 5: Transformation of Internal Audit - The role of internal audit is evolving to focus more on supporting strategic decision-making rather than just compliance checks [5][19] - Different industries and regions have varying focuses, with manufacturing prioritizing supply chain and market competition, while energy and mining sectors are more sensitive to climate risks [5][19] - Overall, cybersecurity, operational resilience, and human capital remain high-risk areas across all sectors, forming the foundation for stable operations [5][19]

Group 1 - The core viewpoint of the GIC's annual report indicates an increase in the five-year annualized return rate from 4.4% to 6.1%, reflecting a strategic shift towards U.S. investments and a focus on artificial intelligence [1] - The report highlights a rise in U.S. investment proportion from 44% to 49%, while the Asia-Pacific investment share decreased from 28% to 24%, and Europe, the Middle East, and Africa remained stable at 20% [1] - The allocation to equities increased from 46% to 51%, while fixed investments decreased from 32% to 26%, and asset investments rose from 22% to 23% [1] Group 2 - The CEO emphasizes the need for vigilance in response to unprecedented uncertainties, including fragmented global trade systems, AI advancements, and climate change [1] - The Chief Investment Officer notes that despite the shift away from the Asia-Pacific region, there are still investment opportunities, particularly in Japan, India, and China, with GIC participating as a cornerstone investor in recent IPOs in Hong Kong [1] - GIC acknowledges China's shift towards more expansive fiscal and monetary policies, which may accelerate economic growth and boost investor confidence, particularly in the technology and AI sectors [2]