Three lines of defence model still evolving, say practitioners

Clearer split in responsibilities between first and second lines needed, say op risk chiefs

Military shields
Three lines of defence: fine-tuning needed

The three lines of defence model for operational risk management needs constant fine-tuning if it is to work effectively for larger banks, practitioners have said. Regulators have sought to make the approach a banking industry standard, but the past 18 months have seen a string of risk managers complain it can be difficult to put into effect.

Initial attempts to implement the approach at HSBC “caused a lot of confusion”, according to Jenny Birdi, the bank’s global head of operational risk audit

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