medium · Frm Part 2 Credit Risk
A Chief Risk Officer is reviewing the 'Three Lines of Defense' model for credit risk governance. A team is responsible for 'independently verifying that the bank's credit limit architecture is functioning as intended and that the first and second lines are following established protocols'.
Which line of defense is this team part of?
- The 'Zero' Line (The Board of Directors).
- The Second Line (Risk Management/Compliance).
- The Third Line (Internal Audit).
- The First Line (Business Units/Front Office).
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