Login

Register

Login

Register

Home Forums Forum Discussion FC Financial Control Discussion 1

Financial Control Discussion 1

Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • #4868 Reply

    Karine
    Participant

    Backround information:
    In the expert view the three lines of defense model may have weakness in practice. In particular:
    • Misaligned incentives for risk-takers in first line of defense.
    Many experts agree that the most important control is the first line of defence. However, this responsibility conflicts with the objective of most risk-takers in the first line, which is to generate sufficient revenue and profits for the institution.
    • Lack of organisational independence of functions in second line of defense.
    Most risk management functions report formally to the board. However, the de facto day-to-day reporting lines and communication channels are more likely to go to senior management than to the board.
    Forum discussion questions
    1. In what line of defense your depertment/function is operating?
    2. Can you relate above described situation to your organization?
    3. What possible solutions you can recommend in order to overcomeabvoe described weakness?

    #4869 Reply

    IAB Academy
    Keymaster

    hi Karine jan

    • This reply was modified 3 months, 3 weeks ago by IAB Academy.
    #8076 Reply

    IAB Academy
    Keymaster

    aaaa

    #8077 Reply

    IAB Academy
    Keymaster

    aaaa

Viewing 4 posts - 1 through 4 (of 4 total)
Reply To: Financial Control Discussion 1
Your information:




top
X