There are five common signs that a financial institution might be purportedly “adopting” the three lines of defense, yet might not be living the three lines of defense in practice. If a financial services firm is exhibiting one or more of these signs, it may be time for an intervention at the C-suite or board level.
With sufficient clarity of thinking, management drive, and determined execution, the three lines of defense can be transformed from “words to live by” to a functional bulwark that can protect the business in good times and in bad. But to be truly effective, the model needs to evolve as the business evolves.
Mark Abrahamson, a London-based principal, and George Netherton, a London-based principal in Oliver Wyman’s Financial Services practice, on why the three lines of defense have a bad name.
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- Energy
- Surface Transportation
- Travel & Leisure
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- Automotive
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- Private Equity And Principal Investors
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capabilities
- Business & Organization Transformation
- Corporate Finance & Restructuring
- Oliver Wyman Labs
- Sustainability Center
- Actuarial
- Climate And Sustainability
- Digital
- Lippincott: Brand and Innovation
- Oliver Wyman Engineers
- Operations
- Organizational Effectiveness
- Payments
- Pricing, Sales, And Marketing
- Risk Management
- Strategy
- Turnaround And Restructuring
- People And Organizational Performance
- Performance Transformation