Three lines of defence — is it the right model?

Donna Turner
Additional contact information
Donna Turner: Senior Consultant, Sciens Consulting, UK

Journal of Financial Compliance, 2022, vol. 5, issue 3, 237-247

Abstract: Despite the plethora of legislation, regulatory requirements and industry guidance that financial institutions need to follow, there is an ever-increasing number of scandals involving risk management, governance and compliance failings. Each time a scandal hits the headlines, supervisory bodies, and organisations themselves, consider how to respond and further strengthen the control environment and enhance policies and the related procedures to prevent the same or similar instances occurring. This paper describes the Three Lines of Defence model within financial organisations, considers the Wells Fargo customer account fraud scandal and the departure of Citigroup’s Chief Risk Officer and debates whether the revisions to the Three Lines of Defence model proposed by the Institute of Internal Auditors will strengthen the risk and compliance frameworks within organisations and provide a more robust system of corporate checks and balances, endorsed by both the industry and the regulators.

Keywords: Three lines of defence; wells fargo; citigroup; institute of internal auditors (search for similar items in EconPapers)
JEL-codes: E5 G2 K2 (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://hstalks.com/article/6843/download/ (application/pdf)
https://hstalks.com/article/6843/ (text/html)
Requires a paid subscription for full access.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aza:jfc000:y:2022:v:5:i:3:p:237-247

Access Statistics for this article

More articles in Journal of Financial Compliance from Henry Stewart Publications
Bibliographic data for series maintained by Henry Stewart Talks ().