Which statement describes the Second Line's role in risk management?

• A. Owns and manages risk.
• B. Supports, monitors, provides frameworks.
• C. Independent assurance to the board.
• D. Executes internal audits.

Answer: (B)

The Second Line focuses on oversight and guidance rather than owning or executing risk activities. It establishes the risk management framework, policies, and risk appetite, and it monitors risk exposures across the organization. It supports the first line by providing methodologies, tools, and expertise to identify, assess, and manage risk, while tracking key risk indicators and ensuring timely escalation when needed. This combination—support, monitoring, and frameworks—best describes the Second Line’s role in risk management. Independent assurance to the board and conducting internal audits are functions of the Third Line, which operates independently to evaluate governance, risk management, and control effectiveness, leaving the day-to-day ownership of risk to the First Line.