Balancing the Three Lines of Defense

The three lines of defense (3LoD) doctrine is well-established at most depository institutions, providing a framework that establishes accountability for risk with business units and a checks and balances mechanism on risk management across the enterprise. Even so, 3LoD by itself is not sufficient to ensure risks are managed effectively. Several high-profile risk events at some large banks over the last several years have highlighted issues that can undermine the 3LoD framework. In this session with Mia Pittman, CRO at the Federal Housing Administration, we'll discuss the importance of risk culture, clarity in roles and responsibilities and distinctions between positional and personal power to the 3LoD model.