Financial Risk Manager Part 2
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A prominent financial institution is currently reviewing its operational risk management strategies in alignment with the Basel Committee's guidelines. In the context of implementing the three lines of defense framework to bolster their risk management processes, which of the following statements is accurate?
A
The internal audit function should serve as the first line of defense and continually validate operational procedures used by the business lines.
B
Business line managers, as part of the first line of defense, should provide a credible challenge to the internal audit function.
C
The corporate operational risk function, as part of the second line of defense, should challenge risk inputs from business line managers.
D
The corporate operational risk function should serve as the third line of defense and validate model assumptions made by senior management.