Pitfall of Current three Lines of Defence Definition in Financial Service Sector

Current model of three lines of defence used widely in financial, insurance sector and in corporate governance has proven, especially during the financial crisis, not a very efficient. The “three lines of defence model” has been there for decades to model the interaction between the primary revenue...

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Main Author: Doinița CIOCÎRLAN
Format: Article
Language:English
Published: Editura ASE 2017-10-01
Series:Revista de Management Comparat International
Subjects:
Online Access:https://www.rmci.ase.ro/no18vol4/04.pdf
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author Doinița CIOCÎRLAN
author_facet Doinița CIOCÎRLAN
author_sort Doinița CIOCÎRLAN
collection DOAJ
description Current model of three lines of defence used widely in financial, insurance sector and in corporate governance has proven, especially during the financial crisis, not a very efficient. The “three lines of defence model” has been there for decades to model the interaction between the primary revenue generation and internal controls. Recently it has been shaped slightly differently by the regulators which changed even further the construction of this model. This paper will explore different organizational strategy which is a modification of the embedded three lines of defence model by proposing that all the controls are primarily own by the first line of defence.
format Article
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issn 1582-3458
2601-0968
language English
publishDate 2017-10-01
publisher Editura ASE
record_format Article
series Revista de Management Comparat International
spelling doaj-art-76a4ec6bfad545c79dececb6252ca75b2025-08-20T02:19:30ZengEditura ASERevista de Management Comparat International1582-34582601-09682017-10-01184390398Pitfall of Current three Lines of Defence Definition in Financial Service Sector Doinița CIOCÎRLAN0Romanian-American UniversityCurrent model of three lines of defence used widely in financial, insurance sector and in corporate governance has proven, especially during the financial crisis, not a very efficient. The “three lines of defence model” has been there for decades to model the interaction between the primary revenue generation and internal controls. Recently it has been shaped slightly differently by the regulators which changed even further the construction of this model. This paper will explore different organizational strategy which is a modification of the embedded three lines of defence model by proposing that all the controls are primarily own by the first line of defence. https://www.rmci.ase.ro/no18vol4/04.pdfcorporate governancebusiness strategyorganizational structurefinancial institutionrisk management
spellingShingle Doinița CIOCÎRLAN
Pitfall of Current three Lines of Defence Definition in Financial Service Sector
Revista de Management Comparat International
corporate governance
business strategy
organizational structure
financial institution
risk management
title Pitfall of Current three Lines of Defence Definition in Financial Service Sector
title_full Pitfall of Current three Lines of Defence Definition in Financial Service Sector
title_fullStr Pitfall of Current three Lines of Defence Definition in Financial Service Sector
title_full_unstemmed Pitfall of Current three Lines of Defence Definition in Financial Service Sector
title_short Pitfall of Current three Lines of Defence Definition in Financial Service Sector
title_sort pitfall of current three lines of defence definition in financial service sector
topic corporate governance
business strategy
organizational structure
financial institution
risk management
url https://www.rmci.ase.ro/no18vol4/04.pdf
work_keys_str_mv AT doinitaciocirlan pitfallofcurrentthreelinesofdefencedefinitioninfinancialservicesector