Audit and Risk Management in Maintaining Financial Stability in Infrastructure Industry

Abstract

The energy and infrastructure sectors are capital-intensive and exposed to significant risks from market volatility, regulatory changes, and technological disruption. This study reviews the role of auditing and risk management in supporting financial stability through a Systematic Literature Review (SLR). The findings show that internal and external audits enhance transparency, detect irregularities, and strengthen investor confidence. Meanwhile, Enterprise Risk Management (ERM) and Integrated Risk Management (IRM) based on ISO 31000 and COSO ERM frameworks improve financial resilience through comprehensive, data-driven risk control. The synergy between audit and risk management strengthens governance, reduces fraud risk, and increases capital efficiency. The adoption of sustainable finance and ESG principles further supports stability. Overall, integrating audit and risk management is essential for resilience in the era of digitalization and green energy transition.