Why do 66% of risk and compliance practitioners think the three lines of defence model should be updated?
As banks survey the new post-financial crisis regulatory landscape, there is a growing need to refresh or even restructure risk management strategies at most financial firms. In areas such as regulatory compliance in particular, banks must now find new ways to monitor and manage risk effectively because traditional methods are failing to address the new regulatory regime.
This white paper examines current attitudes towards the Three Lines of Defence (3 LoD) model for risk governance. It is based on a survey of 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.