Primary Role of Internal Audit Function: Managing Identified Business Risks

D.

The primary role of an internal audit function is to provide independent assurance that the organization's risk management framework is adequate, effective, and being adhered to. Based on this, the best answer is option D, "Validating enterprise risk management (ERM)."

Option A, "Operating the risk management framework," is not the primary role of an internal audit function because the risk management framework should be owned and operated by the business, not by the internal audit function. However, the internal audit function should provide assurance that the risk management framework is adequate and effective.

Option B, "Establishing a risk appetite," is not the primary role of an internal audit function because risk appetite is a business decision that should be established by senior management and the board of directors. The internal audit function can provide insight into the risk appetite, but it should not establish it.

Option C, "Establishing a risk management framework," is not the primary role of an internal audit function because the risk management framework should be owned and operated by the business, not by the internal audit function. However, the internal audit function can provide input and guidance to the business in establishing an effective risk management framework.

Therefore, option D, "Validating enterprise risk management (ERM)," is the best answer. Validating ERM involves reviewing and providing assurance on the organization's risk management process, including risk identification, assessment, mitigation, and monitoring. This ensures that the organization is effectively managing its risks and that the risk management framework is adequate and effective.