Time to update the Three Lines of Defence?
Why do 66% of risk and compliance practitioners think the three lines of defence model should be updated?
Regulation risk journalists from Risk.net recently surveyed compliance and risk practitioners across all three lines working at banks worldwide. Respondents were asked to rate the effectiveness and efficiency of the model in relation to regulatory risk management, and to discuss the main impediments to its implementation within their respective organisations.
The results show that banks currently face challenges in terms of delineating roles and responsibilities, and evidencing individual accountability – key elements of the 3 LoD approach. The use of manual controls and an inconsistent approach to information security cause major problems when implementing this model, according to the survey results.
Download the full whitepaper, “Operational failures of regulatory risk management: Updating the three lines of defence model” here.