iarjbmIARJBMIARJBM2708-5147https://doi.org/10.47310/iarjbm.2025.v06i02.001Optimal Investment Strategy in Light of Financial Environment Risks/ Applied Research in A Sample of Iraqi BanksThe banking enterprise in Iraq faces many difficulties that name for greater adaptable and a hit funding techniques due to the united states of america's increasing financial and financial instability. This studies aims to research the impact of most appropriate investment techniques on mitigating monetary environment volatility, thru an empirical look at of five Iraqi banks over the period 2020–2023. Due to their important significance in helping the electricity of banks' financial positions, key financial signs were taken into consideration, together with capital adequacy, return on equity, go back on belongings, liquidity ratios, and the internet solid investment ratio (NSFR). The have a look at used state-of-the-art statistical evaluation tools with SPSS and a descriptive analytical method. The consequences showed a statistically full-size superb courting between optimal investment techniques and monetary surroundings volatility. Regression assessments confirmed that all impartial variables contributed an acceptable percentage of explanation to modifications inside the monetary surroundings. All of the variables' Sig values had been below 0.05, and the adjusted R2 value changed into zero.34, indicating that the cautioned hypotheses have been legitimate. The effects showed clean versions in performance among banks, with some achieving excessive tiers of operational efficiency and financial stability, whilst others confronted weak capital, liquidity, and profitability. These metrics display a huge discrepancy within the carried out investment rules, emphasizing the need of reformulating investment techniques and bringing them into compliance with prison and market demands. The study recommends that Iraqi banks adopt an integrated and balanced investment approach that takes into account the efficient use of assets, enhancing liquidity ratios, strengthening capital, and diversifying funding sources. This enhances their ability to absorb shocks and contributes to supporting financial and economic stability at the national level.