Economics · Risk Management and Corporate Governance
In the 'Three Lines of Defense' risk management model within banking institutions, which function is primarily associated with the 'second line of defense'?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1The external audit process conducted by independent firms to verify the accuracy of financial statements.
- 2The provision of independent and objective assurance by internal audit to the board of directors.
- 3The establishment of risk management policies, compliance monitoring, and independent oversight of risk-taking activities.✓
- 4The day-to-day management of risks by business unit managers who own and execute transactions.
Correct answer
The establishment of risk management policies, compliance monitoring, and independent oversight of risk-taking activities.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Risk Management and Corporate Governance MCQs →Want more practice questions on Risk Management and Corporate Governance?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Risk Management and Corporate Governance