Whose Line Is It Anyway? Defending the Three Lines of Defence
How do you organise a financial services firm to manage risk effectively? This is a question that is seldom answered without the conversation turning to the “Three Lines of Defence” framework. Institutions are adopting this framework in a half-hearted way and are accordingly reaping half-baked risk-management outcomes.
The challenge for C-suite executives and board members is to diagnose whether their organisations are truly “walking the walk” or merely “talking the talk”. In this report, Oliver Wyman highlights five tell-tale signs showing organisations only purportedly adopting the Three Lines of Defence and what good really looks like with an effective, rigorous framework in place.
Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies [NYSE: MMC].
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