Sapa Conference Day 1 - Third Line Of Defense

5 Questions | Total Attempts: 73

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Defense Quizzes & Trivia

Questions and Answers
  • 1. 
    The three lines of defense model distinguishes among three groups (or lines) as follows:
    1. Functions that own and manage risks
    2. Functions that oversee risks
    3. Functions that provide independent assurance
    4. Functions that provide risk mitigation services
    5. Functions that deliver risks
    • A. 

      I, II and IV

    • B. 

      I, II and III

    • C. 

      I, IV, and V

    • D. 

      I, III, IV

  • 2. 
    Who owns the risks?
    • A. 

      The auditors

    • B. 

      Operational Management

    • C. 

      The compliance department

    • D. 

      The enterprise risk management department

  • 3. 
    Why is there a need for a second line of defense?
    • A. 

      Because in the real world, a single line of defense is inadequate

    • B. 

      To monitor the first line-of-defense control

    • C. 

      To ensure that the first line of defense is properly designed, in place and operating as intended

    • D. 

      All of the above

  • 4. 
    The responsibilities of the risk management and compliance functions are all of the following, EXCEPT:
    • A. 

      Providing risk management frameworks

    • B. 

      Providing the governing body and senior management with comprehensive assurance

    • C. 

      Monitoring the adequacy and effectiveness of internal controls.

    • D. 

      Facilitating and monitoring implementation of effective risk management practices

  • 5. 
    Why is there a need for a third line of defense?
    • A. 

      Because the first and second line are not to be trusted

    • B. 

      To ensure that the auditors have a job in the organization

    • C. 

      Because the high level of independence is not available in the second line of defense

    • D. 

      To assist management in developing processes and controls to management risks

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