Читать книгу Non-financial Risk Management in the Financial Industry - Группа авторов - Страница 11

Three chapters outline the governance and organisational structures required for sustainable non-financial risk management, standing on three major pillars. The three lines of defence (LoD) model (chapter 4) defines the roles and responsibilities of the first LoD (front, middle and back office), the second LoD (risk control functions) and the third LoD (internal audit). The chapter focuses on the independence of second-LoD control functions and describes the concept of risk coordinating functions in the first LoD as a regulatory competence centre, coordination unit and interface to the second LoD.

‘Global functional lead’ (chapter 5) stands for a combination of strategic, governance and risk management elements defined by an institution that aim to enable a consistent execution of risk management activities across complex organisations. It comprises the central setting of global risk management standards by horizontal risk management functions and their execution by vertical product- or region-focused functions, with direct or indirect reporting lines into horizontal functions. A policy and procedure framework (chapter 6) intends to ensure that standards are met in the execution of an institution’s business and operational activities. It builds a structural policy hierarchy, allocating the financial institution’s documents including board directives, policies and procedures to different hierarchical levels. It structures them by risk types, business segments and relevant geographies.