AE 5 Q6

In this line of defense, operational managers own and manage risks.

• First

• Second

• Third

• Fourth

The two aspects under the first line of defense are management controls and ________________.

• Financial control

• Security

• Risk management

• Internal control measures

They are responsible for implementing corrective actions to address process and control deficiencies.

• Top management

• Operational management

• Security management

• Financial management

Functions that own and manage risks.

• First line of defense

• Second line of defense

• Third line of defense

• Fourth line of defense

It is called as the risk management and compliance function.

• First line of defense

• Second line of defense

• Third line of defense

• Fourth line of defense

A function (and/or committee) that facilitates and monitors the implementation of effective risk management practices by operational management and assists risk owners in defining the target risk exposure and reporting adequate risk-related

information throughout the organization.

• Risk management

• Compliance

• Security

• Development

A function to monitor various specific risks such as noncompliance with applicable laws and regulations.

• Risk management

• Compliance

• Security

• Development

A function that monitors financial risks and financial reporting issues.

• Risk management

• Compliance

• Controllership

• Security

It establishes the risk management, compliance and controllership functions to ensure the first line of defense is properly designed, in place, and operating as intended.

• Operational management

• Security management

• Development management

• Management

The third line of defense.

• Internal audit

• External audit

• Government audit

• Private audit