Three Lines of Defence Model
From ACT Wiki
Financial services - risk management
The Three Lines of Defence Model is designed to assure the effective management of risk.
First line of defence
Under the first line of defence, operational management has ownership, responsibility and accountability for directly assessing, controlling and mitigating risks.
Second line of defence
The second line of defence consists of activities covered by several components of internal governance including compliance, risk management, and other control departments.
This line of defence monitors and facilitates the implementation of effective risk management practices by operational management and assists the risk owners in reporting adequate risk related information.
Third line of defence
Internal audit forms the organisation’s third line of defence.
