The risk function has the fundamental responsibility of protecting the financial institution and its capital. In an increasingly complex environment, an effective risk management function is critical for ongoing survival. Risk is responsible for group-wide management and control of risks, such as credit risk, market risk, operational risk, liquidity risk, reputational risk, model risk, and legal, and compliance risk. Internal Audit. Internal audit is a department independent of line management whose prime responsibility is to review the quality and effectiveness of the controls within the banks to manage and mitigate risk and protect the assets of the bank. In performing this work, an internal audit provides recommendations and advice to management on matters requiring attention. To maintain their complete independence, internal audit is not responsible for performing or authorizing any of the day-to-day tasks, which enable the bank to operate, nor is it directly responsible for the implementation of any new initiatives, even where these arise as a result of internal audit recommendations.