Three Lines of Defense
I try to give you simple explanation on the concept of 3 line of defense.
The three lines of defense is a risk governance paradigm that divides operational risk management responsibilities amongst three functions. Individuals in the first line are directly responsible for and manage risk. This approach is often referred as a 3LD model (Three lines of defense). 3LD models distinguish several business functions between “risk owner” and “risk manager” (the functions that deal with risk), also between “overseeing risks” and the “independent assurance”.
The second line supervises the first, establishing policies, defining risk tolerances, and monitoring compliance.
3 Lines of Defense (Model) in Risk Management
Теги
risk management frameworkiso 14971iso 31000risk management planfinancial riskliquidity riskenterprise risk managementthree line of defense risk managementthree lines of defense risk management modelthree lines of defense modelthree line of defense iia2nd line of defence in compliance risk managementstuployerauditermobjectivityindependancebusinessfinancefrmaccaciacisacpaacfe
