2nd Line of Defense

To ensure 1st line of defense is properly designed, in place, and operating as intended.

2nd Line of Defense

Risk Management Function and/or comittee:
Facilitates and monitors the implementation of effective risk management practices by operational management and assists risk owner in defining the target risk exposure and reporting adequate risk-related information throughout the organization

2nd Line of Defense

A Compliance Function:
Monitor various specific risk such as noncompliance with aplicable laws and regulations. Reports directly to the governing body and may severally exist

2nd Line of Defense

A Controllership Function:
Monitors financial risk and financial reporting issues

2nd Line of Defense

The responsiblities of these function:
Supporting management policies, defining roles, &responsibilities, setting goals Providing risk management framework Identifying known and emerging issues Identifying shifts in the organizations implicit risk apetite Assisting management in developing processes and controls to manage risks and issues

2nd Line of Defense

Providing guidance &training on risk management processes Facilitating & monitoring implementation of effective risk management practices by operational management Alerting operational management to emerging issues and changing regulatory and risk scenarios Monitoring the adequacy and effectiveness of reporting, compliance with laws and regulations and timely remediation of deficiencies