The Effect of Sustainable Auditing on Improving Risk Management Decisions: A Study in Iraqi Banks

Abstract

This study aims to demonstrate the impact of sustainable auditing on improving risk management decisions in Iraqi banks. Sustainable auditing is considered one of the modern approaches that contributes to enhancing transparency and improving the quality of financial and non‑financial information, which is directly reflected in the efficiency of administrative decisions related to risk management.

The research problem is represented in the weakness of the role of sustainable auditing in supporting and improving risk management decisions in Iraqi banks. The study relied on the descriptive–analytical approach by conducting a field study on a sample of employees working in risk management departments, internal auditing departments, and senior management in a number of Iraqi banks. Data were collected using a questionnaire designed to measure the dimensions of sustainable auditing (economic dimension, social dimension, and environmental dimension) and their impact on improving risk management decisions.

The results of the study indicated that there is a significant positive effect of sustainable auditing in improving the processes of identifying, evaluating, and monitoring risks, as well as reducing uncertainty and enhancing the ability to respond to potential risks. The findings also showed that adopting sustainable auditing practices contributes to supporting more sustainable decisions and strengthening stakeholders’ confidence.

The study recommended the need to establish a clear framework for sustainable auditing in the Iraqi banking sector and to increase specialized training programs, in addition to achieving integration between the auditing function and risk management, in a way that enhances the sustainability of banking performance in the long term.