Evaluating the Impact of Risk Management, Compliance Practices, and Internal Audit Quality on Organizational Performance: Evidence from Big 4 Advisory Firms in the Gulf Region

Abstract

This study aims to evaluate how risk management practices, compliance adherence, and internal audit quality influence organizational performance within leading advisory firms, particularly the Big 4 firms operating in the Gulf region. Given the increasing complexity of regulatory environments and the demand for operational excellence, this research explores the extent to which internal governance mechanisms contribute to improved business outcomes. A quantitative research approach was adopted, with data collected through structured surveys administered to 300 professionals employed in various departments—including risk, internal audit, and compliance—across Big 4 firms in Qatar, the United Arab Emirates, and Saudi Arabia. Participants included mid to senior-level employees with relevant industry exposure in sectors such as government, healthcare, insurance, and aviation. The collected data were analyzed using multiple regression techniques to examine the relationship between the identified variables. The findings reveal a significant and positive correlation between all three independent variables and organizational performance. Internal audit quality demonstrated the strongest influence, followed by risk management practices and compliance frameworks. These results highlight the strategic importance of strong internal governance and standardized practices in enhancing overall organizational efficiency, regulatory compliance, and stakeholder trust in advisory firms.