Under the 'Three Lines of Defence' risk accountability model, the First Line is accountable for treating the risk. Select one: True False

Answer

True

Explanation

The 'Three Lines of Defence' model is a framework for risk management and control within organizations. In this model, the First Line of Defence refers to the operational management and staff who are directly responsible for identifying and managing risks. They are accountable for treating the risks associated with their respective areas of responsibility. This includes implementing risk controls, monitoring risks, and ensuring that proper procedures are followed.

The Second Line of Defence typically involves risk management and compliance functions that provide oversight and guidance to the First Line, while the Third Line consists of internal audit functions that evaluate the effectiveness of both the First and Second Lines. Thus, the statement that the First Line is accountable for treating the risk is indeed true as they are the frontline defenders against risks within the organization.