Question

With regard to the 'Three Lines of Defence,' the action to provide an independent perspective and challenge where required is associated with which line?

a) First Line
b) Second Line
c) Third Line
d) Fourth Line

Answer 1

The task to offer an independent perspective and challenge is associated with the Third Line of Defence, which represents the internal audit functions that are independent and provide assurance on risk management effectiveness.

Step-by-step explanation:

The action to provide an independent perspective and challenge where required, as pertaining to the 'Three Lines of Defence' model in risk management and governance, is associated with the Third Line. The Third Line of Defence is typically represented by internal audit functions that are designed to be independent from the operations of the organization. Their role is to provide assurance to the board and senior management on how effectively the organization assesses and manages its risks, including the manner in which the first and second lines operate. The First Line consists of operational managers that are directly responsible for managing risks within their own operations. The Second Line includes risk management and compliance functions that are responsible for developing risk management frameworks and ensuring these are being followed.