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32

First Line and Second Line

Two of the 'three lines' model: the first line owns and operates risks and controls (the business and operations), while the second line (risk and compliance functions) sets policy and oversees, advises, and challenges the first line.

The three-lines model clarifies who does what in risk and control. The first line, operational teams, owns the risks they create and runs the day-to-day controls; the second line, risk, compliance, and security functions, provides frameworks, policy, oversight, and challenge; the third line (internal audit) gives independent assurance. Understanding the first/second line split helps a GRC analyst see their oversight-and-advisory role versus the business's ownership of controls.

Introduced in: GRC Analyst Fundamentals

Examples

  • An operations team owning and running its controls as the first line.
  • A compliance function setting policy and challenging the first line as the second line.
  • GRC advising and overseeing rather than owning the operational control.

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