Three lines of defence model comes under attack

Operational risk managers say idea is too formalised and beset by implementation challenges

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The three lines of defence model looks great on paper. A key part of the Basel Committee on Banking Supervision's 2011 Principles for the sound management of operational risk, the model is designed to enhance accountability, risk governance and decision-making within a business by splitting responsibility for managing risk between frontline employees, a second line consisting of risk management staff, and a third line made up of internal audit.

One need only look back over the past decade to

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