"Risk-based Internal Audit (RBIA) gives good results to Mitigate the various Risks in the Banking Sector". Explain.

The advantages of the Risk-Based approach to the Internal Audit function in Banks are as follows: It appropriately defines the audit universe and identifies the auditable branches within the Bank for which these analyses would be carried out. It assists the management in identification of appropriate risk factors to reflect the managements concerns. It results in development of an appropriate format for evaluating risk factors so that the more important risk factors play a more prominent role in the risk assessment process than less important risk factors. It develops a combination rule for each branch, which will properly reflect its riskiness over several risk factors that have been identified and a method of setting up audit priorities for the branches. It results in appropriate audit coverage plan, which provides a roadmap for the management of internal audit staff skills so that they are available to carry out audits of appropriate scope when they are needed the most. This risk-based internal audit results in a process-oriented audit with a risk management perspective, which advises management on the steps to be taken for effective risk management on a bank-wide basis.