Three Lines of Defense & Risk Management |The Risk Management Research
HTML-код
- Опубликовано: 29 авг 2024
- This video explains the application of three lines of defence in operationalizing enterprise risk management. Enterprise risk management is about the application of risk management across the organisation. All employees are involved in performing risk management activities. The critical risk management activities are risk identification, risk measurement, risk mitigation, risk monitoring, and risk reporting. How will the ERM activities be operationalized within the organisation? This is operationalised by applying the three lines of defence model. Three lines of defence are segregating the workforce into three sections: first, all employees excluding risk, compliance, and Audit; second, risk and compliance; and third, the audit function.
The Risk Management Research | Sonjai Kumar
#Risk, #riskmanagement, #Enterpriseriskmanagement, #riskanalysis #Riskculture , #threelinesofdefence #businessriskmanagement
#RiskAppetite, #RiskFramework, #riskidentification, #riskstrategy
Hello friends welcome to my channel the risk management research I'm Sonjai Kumar and today I am bringing the video on the three lines of defense and the risk management today I'm going to talk on the importance of the three lines of Defense in the application of risk management or an Enterprise risk management this is you know an important topic when it comes to application of Enterprise risk man man agement and how does the Enterprise risk management get implemented via the three lines of Defense model let's see so let's understand you know first the importance of the three lines of defense let's go back to the fundamentals and look at the Enterprise risk management is about the application of risk management across the organization this is an the the starting point the the starting point says that the Enterprise risk management is the is about the application of risk management across the organization this ERM or the Enterprise risk management is different from The Silo risk management which was earlier used to be performed Silo risk management is being performed by few departments such as underwritings claims liquidity risk management like that but in the Enterprise risk management the entire organization performed the risk management activity so in order to perform the risk management activities across the organization there should be a model so that you know it is implemented fully across the organization so here all the employees are involved in performing the risk management activities the critical activities the critical risk management activities are basically as I have you know already discussed in some of my previous videos that the key risk management activities are risk identification risk measurement risk mitigation and risk monitoring and risk reporting so this is the process of the risk management activities that is being performed by every organization those who are you know doing the risk management activity so how will the ERM activity be operationalized within the organization so that it is you know across it this is operationalized by applying the three
lines of Defense model so what is this the three lines of Defense model so that the enter so that the risk management process is applied across the organization what it does is the three lines of Defense uh segregates the workforce into the three sections there is no demarcation in terms of that how does the people sit but it has been you know segregated in terms of um uh in which areas people are working so first all the employees working excluding the risk people and the compliance people so all the employees for example Marketing sales HR investment Finance all the employees belongs to the first line of first line of defense the second line of defense involve risk management employees and the compliance employees and the third line of defense include the audit employees so this is the segregation of employees across the organization in terms of the first line the second line and the third line this has been done there so that the risk management is applied across the organization we shall see in the next slide that how it will be performed or how it is
performed the first line of defense the second line of defense the third line of defense the first line is the business line management the second line is risk management the third line is internal audit and what does the first line do business line management are primarily responsible for managing its own process so the first thing is that they have to manage their own process they have to do their core activities the sales people is to sell the business the marketing people is to Market it up so it is the it is the core.
Great Video! Great Lesson Learning!
Good presentation and so much information shared
Very informative
Though some are treating 3 LOD as a dead horse, but it has enormous importance while implementing ERM.
Yes some people think that 3 lod is meaningless, but what mechanism will be applied to implement ERM ?
@@sonjaikumar5859 Risk Management Process