{"id":7810,"date":"2018-12-05T15:37:17","date_gmt":"2018-12-05T13:37:17","guid":{"rendered":"https:\/iia-launches-global-review-of-three-lines-of-defense\/"},"modified":"2018-12-05T15:37:17","modified_gmt":"2018-12-05T13:37:17","slug":"iia-launches-global-review-of-three-lines-of-defense","status":"publish","type":"post","link":"https:\/\/vaa.lt\/en\/iia-launches-global-review-of-three-lines-of-defense\/","title":{"rendered":"IIA Launches Global Review of \u2018Three Lines of Defense\u2019"},"content":{"rendered":"<p class=\"ms-rteThemeFontFace-2\"><em>Study focuses on ensuring widely used model<br \/>continues to meet needs in a changing organizational climate<\/em><\/p>\n<p class=\"ms-rteElement-P\">LAKE MARY, FL (Dec. 5, 2018) \u2013 For more than 20 years, organizations around the world have turned to the \u201cThree Lines of Defense\u201d model to navigate ever-evolving business challenges toward achieving and sustaining success.<\/p>\n<p class=\"ms-rteElement-P\">A widely used concept designating essential roles and duties in governance, risk management and control, the Three Lines of Defense is rooted in financial services but has come to serve a broader range of industries concerned with myriad issues around governance and risk management.<\/p>\n<p class=\"ms-rteElement-P\">Acknowledging changing stakeholder expectations and increasing complexities of organizations, The Institute of Internal Auditors (IIA), in collaboration with specialists in governance and risk management, launched an extensive review of the Three Lines of Defense, weighing the concept\u2019s strengths, application and usefulness toward ensuring its continued relevance in today\u2019s operational climate.<\/p>\n<p class=\"ms-rteElement-P\">Key to the study, and an updated position paper planned for release in 2019, is how the Three Lines of Defense model may be adaptable and tailored to organizations of all sizes and sectors, said Jenitha John, CIA, QIAL, Vice Chairman of Professional Certifications and leader of the Three Lines of Defense task force.<\/p>\n<p class=\"ms-rteElement-P\">\u201cThe model must be flexible to allow for a diversity of users, and it must take into account the ever-changing nature of organizations and organizational environments,\u201d John said. \u201cThose charged with governance must be able to engage the Three Lines of Defense model and concept so that they may decide the most appropriate way to establish structure and resources within their organizations. Three Lines is fully capable of serving this need, but it also must address situations that exist where the three distinct lines are not in place.\u201d<\/p>\n<p class=\"ms-rteElement-P\">The current Three Lines of Defense model is delineated by:<\/p>\n<ul>\n<li>Operational management (first line)<\/li>\n<p>&#13;<\/p>\n<li>Risk management and compliance functions (second line); and<\/li>\n<p>&#13;<\/p>\n<li>Internal audit (third line), which provides an organization\u2019s governing body and senior management with comprehensive assurance based on its enterprise-wide independence and objectivity.<\/li>\n<\/ul>\n<p class=\"ms-rteElement-P\">The IIA study is considering roles and responsibilities and the need for \u201chorizontal coordination\u201d and communication in the approach to risks and opportunities, John said. \u201cOur focus is around coordination and collaboration, and on alignment and integration of the approach used across the model.\u201d<\/p>\n<p class=\"ms-rteElement-P\">IIA Global Chairman Naohiro Mouri, CIA, said the model is ideally situated to address a complex world. \u201cThere is a shared responsibility and accountability for the execution and assurance of governance, risk management, and internal control,\u201d Mouri said. \u201cOur aim is not to replace Three Lines of Defense or invent a new model, but to ensure it can accommodate the nuances and dynamics we see across different organizations, so that they may leverage and learn from each other more effectively and strategically.<\/p>\n<p class=\"ms-rteElement-P\">\u201cWe also must embrace the concept that risk goes beyond defense,\u201d Mouri said. \u201cUncertainty creates risks and it creates opportunities. Consideration must be given to both sides in decision making and planning at all levels. Organizations must decide the most appropriate way to allocate and structure resources and responsibilities within their organizations, using the Three Lines of Defense to their advantage.\u201d<\/p>\n<p class=\"ms-rteElement-P\">Based on input from working and advisory groups engaged by The IIA, an updated position paper will be presented for public comment in the first quarter of 2019. Details of this exposure will be announced in January. The IIA\u2019s existing position paper, \u201c<a href=\"https:\/\/global.theiia.org\/standards-guidance\/Public%20Documents\/PP%20The%20Three%20Lines%20of%20Defense%20in%20Effective%20Risk%20Management%20and%20Control.pdf\" target=\"_blank\"><em>The Three Lines of Defense in Effective Risk Management and Control<\/em><\/a>,\u201d was last updated in 2013.<\/p>\n<p class=\"ms-rteElement-P\">For further insight on The IIA\u2019s review of the Three Lines of Defense, see IIA President and CEO Richard Chambers\u2019 <a href=\"https:\/\/iaonline.theiia.org\/blogs\/chambers\" target=\"_blank\">latest blog post<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"<p>Study focuses on ensuring widely used modelcontinues to meet needs in a changing organizational climate LAKE MARY, FL (Dec. 5, 2018) \u2013 For more than 20 years, organizations around the world have turned to the \u201cThree Lines of Defense\u201d model to navigate ever-evolving business challenges toward achieving and sustaining success. A widely used concept designating [&hellip;]<\/p>","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[],"class_list":["post-7810","post","type-post","status-publish","format-standard","hentry","category-iia-naujienos"],"featured_image_src":{"landsacpe":false,"list":false,"medium":false,"full":false},"_links":{"self":[{"href":"https:\/\/vaa.lt\/en\/wp-json\/wp\/v2\/posts\/7810","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vaa.lt\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vaa.lt\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vaa.lt\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/vaa.lt\/en\/wp-json\/wp\/v2\/comments?post=7810"}],"version-history":[{"count":0,"href":"https:\/\/vaa.lt\/en\/wp-json\/wp\/v2\/posts\/7810\/revisions"}],"wp:attachment":[{"href":"https:\/\/vaa.lt\/en\/wp-json\/wp\/v2\/media?parent=7810"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vaa.lt\/en\/wp-json\/wp\/v2\/categories?post=7810"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vaa.lt\/en\/wp-json\/wp\/v2\/tags?post=7810"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}