Final answer:
The first line of defence in the risk management framework is operational staff. These individuals are responsible for the hands-on management of risks and are the initial gatekeepers in protecting the organization. Their proactive involvement is crucial in mitigating potential risks from the operational standpoint.
Step-by-step explanation:
The first line of defence in the risk management framework is operational staff. Operational staff are those employees and teams who are directly involved in the day-to-day operations of a company. They play a critical role in risk management by being the first to identify, assess, and manage risks on the front lines.
Operational staff are well-placed to spot potential risks early due to their hands-on experience with processes, procedures, and systems. Moreover, they are responsible for implementing the internal controls designed by senior management to mitigate risks.
Oftentimes, the active participation and vigilance of operational staff can prevent risks from materializing or escalating. Therefore, while internal audits, senior management, and policies/procedures are crucial components of risk management, the operational staff are effectively the initial gatekeepers in safeguarding the organization against risks.