The second line of defence consists of the independent functions of Risk Management, Compliance, and Operational Risk. This line of defence monitors and facilitates the implementation of effective risk management practices by the first line, providing "oversight and challenge"; and also assists the "risk owners" in producing and interpreting risk-related reporting.
The second line of defense encompasses the independent functions of Risk Management, Compliance, and Operational Risk. This layer ensures that the first line implements effective risk management practices by providing "oversight and challenge"; it also supports "risk owners" in producing and interpreting risk-related reports.