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It doesn’t really pigeonhole you but it does require you to be more proactive with your career. In PA the one benefit is that as long as your performing well you can get to senior manager/ director pretty easy since there is normally a business need to promote alot of people. In industry if you only have 1-2 managers with a small department unless they leave or move up you will not get promoted. So when you feel like your ready for the next level you need to be proactive and willing to move if the opportunities are not present at your current company; or if you don’t want to leave understand that you may be a senior for 5-10 years.
I’ve seen plenty of people move from internal audit into finance, operations, and even risk management roles. It doesn’t have to be a career dead end if you’re strategic about your next steps.
IA career can be very dynamic but in private it’s up to you to make promotions happen. It’s not like in public where they have promotion cycles etc. Here you need to network and look out for opportunities.