Ep 227: Risk Management and The Three Lines of Defense w/ Grant Thornton’s Risk and Advisory Team

The Audit Podcast

This week’s episode, we're joined by the Grant Thornton risk and advisory team—Andres Castañeda, Jaynitsa Paul, and EJ Jimenez.

In this episode, they explain their article Risk Management: Get Your Three Lines in Order in simple terms. They clear up common misunderstandings about the first, second, and third lines of defense in risk management. They also give real examples of when the system works well and when it fails—and why that matters.

Check out their article, and connect with Andres, Jaynitsa, and EJ on LinkedIn.

Also, be sure to follow us on our new social media accounts on LinkedIn, Instagram, and TikTok.

Also be sure to sign up for The Audit Podcast newsletter and to check the full video interview on The Audit Podcast YouTube channel.

Timecodes:

5:19 - How Grant Thornton Utilizes LLMs

8:43 - Understanding The Three Lines of Defense

16:49 -Best Practices for Physical Inventory Control

28:37 - Roles and Responsibilities in the Three Lines of Defense

32:13 - The Relationship Between Compliance and Internal Audit

34:53 - Common Misconceptions About The Three Lines of Defense

37:36 - External Audit’s Role in The Three Lines of Defense

38:31 - Advantages of a Strong Third Line of Defense

42:05 - Tools for the Third Line of Defense

44:03 - Final Thoughts

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