What role does the second line of defence play in an organisation?

The second line of defence plays a critical role in an organization by providing oversight and guidance to ensure that risk management practices are effective and that the controls established by the first line of defence are properly monitored. This layer supports the risk management framework by assessing whether the first line is operating effectively and adhering to the established policies and controls.

The second line of defence typically includes functions such as compliance and risk management teams that are tasked with developing frameworks and guidance but do not directly manage operations themselves. Instead, they offer the necessary support to ensure that the organization's objectives are met while managing risks appropriately. This monitoring function helps in identifying gaps in controls or potential areas of improvement, ensuring that the organization maintains a robust risk management strategy.