The impact of internal auditing on the management of operational and reputational risks
DOI:
https://doi.org/10.61347/psa.v4i1.133Keywords:
Internal audit, independence, operational risk, predictive technology, risk managementAbstract
Internal auditing is fundamental to comprehensive risk management, playing a key role in ensuring the identification, assessment, and effective mitigation of operational and reputational risks. Its function is to provide independent assurance to senior management regarding the adequacy and effectiveness of risk management processes. The aim of this study was to analyze the impact of deficiencies and critical factors that identify vulnerabilities affecting the transparency and trust of institutions. This research applied a mixed-methods approach to evaluate the impact on operational and reputational risks. The quantitative component employed an explanatory design, allowing for the analysis of key behaviors and relationships within the processes. The qualitative approach provided an interpretive understanding based on professional practice. Furthermore, a predictive method based on multiple regression and Pearson correlation was incorporated to anticipate risks and project knowledge-based management scenarios, thereby strengthening the traceability and objectivity of the analysis. The results showed that a robust internal audit, aligned with strategic objectives, significantly reduces the probability of operational incidents and improves the organization's public perception. It was also found that the independence of the internal auditor and the implementation of continuous auditing technologies are key factors in preventing reputational crises. It is concluded that the independence and professional competence of the internal auditor are determining factors in the effectiveness of internal control. Furthermore, its impact extends beyond the compliance function, contributing to value creation and organizational sustainability.
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Copyright (c) 2026 Iván Patricio Arias-González, Norma Patricia Jiménez-Vargas, Pedro Lucas Larrea-Cuadrado, Rosa de Lourdes Acosta Velarde
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