TPRM Lines of Defense (LoD)

Question 1

First LoD

Answer 1

First line of defense: The business that is leveraging the third party

Question 2

Second LoD

Answer 2

Second line of defense: Validation check or risk management for the first line. Sometimes owns policies and checks against what the business is doing so in line with business expectations

Question 3

Third LoD

Answer 3

Third line of defense: internal audit, making sure second and first line have strong controls in place and operating effectively.

Question 4

Forth LoD

Answer 4

Forth line of defense: external auditors or regulators, anyone outside of your organization that has a risk assessment lenses.