Risk assurance and three lines of defence

Best practice guide to risk assurance and three lines of defence  

In today’s ever changing world risk management is of increasing importance. Stakes are high… without a cohesive approach to risk, risks may not be identified, effectively managed, and resources may not be deployed appropriately. Sound risk management processes are essential for any business, to ensure the achievement of strategic objectives and long-term sustainability.

Many organisations have processes in place to manage risk, but, they are often not as robust as they need to be; or they are more focused on yesterday’s risks rather than being forward looking. Organisations like yourself need to start taking a holistic approach to risk, moving from being reactive to proactive, and using risk as a strategic driver of performance.

Integral to an effective risk management culture is risk assurance and the well-cited approach of three lines of defence. Risk assurance provides confidence, based on sufficient evidence, that internal controls are in place and are operating effectively, and that objectives are being achieved.

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