Three lines of defence practice benchmark
- 26 February 2020
Exploring the 3LOD in operational risk management
The three lines of defence (3LOD) is an accepted model for an effective risk management system. It is used widely because, in theory, it provides a standardised, comprehensive risk management process that should clarify roles, reduce cost and reduce effort. However, the reality often differs from the theory.
In this practice benchmark, we'll help you understand how the three lines of defence model is implemented in practice, its challenges and what best-practice might look like.
The practice benchmark is free for all firms who are members of ORX, and we already have more than 40 financial institutions registered. If you're not a member then you can still part, prices starts from as little as £2,000 – just email Roland Kennett to find out more.
Understand how 3LOD works in practice
This practice benchmark will help you understand how three lines of defence works in reality across the industry, how companies may adapt the structure to meet their own requirements and how the model may evolve in the future.
Through webinars and roundtable meetings you'll have the chance to discuss aspects three lines of defence in detail with fellow operational and non-financial risk professionals.
One of the main benefits of ORX practice benchmarks is the chance to see how your firm specifically compares to others in the industry. If you take part, you'll receive a customised benchmark report showing your three lines of defence practice against the other participants.
To take part, or to find out more, please email Roland Kennett.
What will I get from the practice benchmark?
If your organisation takes part in the three lines of defence practice benchmark, you'll receive:
- A summary report showing current industry practice and future evolution
- A set of case studies of current and future practice
- An individual customised benchmark report showing your 3LOD practice against your peers
You'll also get the chance to discuss various aspects of the practice benchmark in more detail through a series of roundtables and webinars. Please get in touch with us for more information or to sign up.
What will I need to do to take part?
Participants will be asked to complete an online survey. This survey will ask some specific questions around the 3LOD, ask participants to self-assess against some maturity descriptors (which have been agreed by a peer-led advisory group) and also ask for some case studies.
Participants will have the opportunity to actively participate in discussions at the two roundtables which we will be holding ahead of publishing the final report. You'll also be able to take part in a series of webinars discussing the project and its outcomes.
As an ORX member, it's free to take part in this practice benchmark. Prices start from £2,000 for organisations who aren't members of ORX. Email Roland Kennett to let us know that your firm is interested.
About ORX practice benchmarks
The ORX practice benchmark series explores specific areas of operational and non-financial risk practice in detail. It helps you understand what is standard practice across the industry, what areas you're ahead your peers in and where you could improve.
We've already conducted a number of practice benchmarks. Whether you're a member of ORX or not, you can request an individual report for any of the benchmarks we've carried out at any time.