As societies moved from uncertainty and prophecy towards informed and calculated risk, this necessitated skilled and dedicated individuals to manage the level of risk in line with risk appetite (implicit or explicit), to provide unambiguous warnings at appropriate junctures, and to call a halt to activities outside of risk appetites before risks crystallised, thus protecting others from negative outcomes.
The internal audit function is one of the fundamental “checks and balances” for sound corporate governance, designed to provide an independent assurance to the board of directors and senior management on the quality and effectiveness of a bank’s internal control, risk management and governance systems and processes, to help the board and senior management protect their organisation and its reputation.