In the Lines of Accountability Model, what is the role of the Second Line?

In the Lines of Accountability Model, what is the role of the Second Line?
A . Individuals and Teams who are responsible for financial reporting and budgeting activities within the organization.
B . Individuals and Teams who establish performance, risk, and compliance programs for the First Line and provide oversight through frameworks, standards, policies, tools, and techniques.
C . Individuals and Teams who manage external relationships with stakeholders, investors, and regulators.
D . Individuals and Teams who provide legal advice and support to the organization in case of disputes
or litigation.

View Answer

Answer: B

Explanation:

The Second Line in the Lines of Accountability Model focuses on oversight and support for the operational activities managed by the First Line.

Establishing Programs:

Second Line functions create risk management, compliance, and performance frameworks that guide the First Line in executing their responsibilities effectively.

Providing Oversight:

The Second Line monitors adherence to these frameworks and provides tools, policies, and standards to ensure alignment with organizational objectives and regulations.

Examples of Second Line Roles:

Compliance officers, risk managers, and internal control specialists.

Reference: COSO ERM and Lines of Defense Model: Defines the role of the Second Line in overseeing and guiding risk management and compliance processes.