The document discusses the limitations of the traditional three lines of defense (3LOD) risk management model.
- First line: Process Owners / Operational Management
- Second line: Risk Management & Compliance
- Third line: Audit
🔎 Challenges with the 3LOD model include immature second and third-line functions, over-reliance on the third line, and lack of integrated assurance activities.
💡 An integrated risk management (IRM) framework is proposed to bridge the gaps within the 3LOD model. It aligns people, processes, and technology to provide a holistic view of risks.
IRM presents opportunities to integrate risk into strategic planning, connect performance management and risk management, harmonize language around risk, identify and respond to risks, enhance responsiveness and resilience, harness and manage technology, and realize the benefits of digitalization.
The document emphasizes the importance of integrating risk management across the organization and leveraging technology for better risk intelligence and decision-making.
Source: Deloitte
#VMR #GenerativeAI #Future #Work
This article was compiled by Admin CTO Vietnam Network.
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