WEBVTT

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Diagram two separates board oversight of policy and risk appetite from senior management

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accountability, escalation and capacity building.

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Operational teams implement the strategy.

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Suppose CoastalFoods reaches an agreed escalation trigger.

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The business line records the evidence.

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Second line risk validates the concern and uses the institution's escalation process.

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The climate working group supports coordination.

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Risk, strategy, compliance, sustainability and business lines retain their functions.

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Internal audit is the third line, distinct from operational execution.

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Management assigns actions and resources.

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The board receives appropriate oversight reporting; internal audit tests controls

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independently.

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Record owners, due dates and evidence for the fictional follow-up.