Enhancing Investor Confidence through Internal Audit Transformation and Enterprise Risk Management Maturity

Abstract

The dynamics of the modern business environment require companies to adapt to economic uncertainty, technological disruption, and regulatory complexity, all of which significantly influence investment decisions. This study aims to analyze the relationship between the transformation of the internal audit function, the level of risk management maturity, and their impact on investor confidence and investment sustainability. Through a comprehensive literature review of recent empirical and conceptual studies, the findings demonstrate that a strategically oriented internal audit does not merely serve as a compliance mechanism but functions as a value-adding partner that enhances corporate governance effectiveness. The integration of risk management frameworks based on international standards such as ISO 31000 has been shown to increase transparency, accountability, and investor perceptions of governance credibility. These insights highlight the critical role of synergy between internal audit and risk management maturity in strengthening organizational resilience and promoting sustainable investment practices in the global market. The study contributes to the theoretical discourse by positioning governance maturity as a determinant of investment attractiveness and long-term financial stability.