Three Lines of Defense: A Guide to Effective Governance
The Three Lines of Defense model provides a robust framework that enables organizations to navigate risks systematically. By clearly defining responsibilities across the three lines, businesses can enhance accountability, improve risk management efficiency, and foster a culture of continuous improvement.
Introduction to the Three Lines of Defense
In the fast-paced and dynamic world of business, effective governance is crucial for sustainable growth and risk management. One powerful framework that aids organizations in achieving this delicate balance is the Three Lines of Defense model. This model provides a structured approach to risk management, ensuring that responsibilities are clearly defined across the organization.
In this article, we’ll explore the concept of the Three Lines of Defense and provide real-world examples to illustrate its practical application.