Risk management, like football is a team effort. To get past the goalie it has to go right through the defence, midfield and strikers… the lines of defence.
There are FIVE
aspects to managing risk:
1. The “man on the ground” performing the role that was assigned to him in an organisation with a positive culture – “the tone”.
2. The Line Manager / Head of Department overseeing the process, managing the risk and exhibiting the “tone at the top”.
3. An independent internal review (audit) function to provide assurance that the lines of defence function effectively.
4. An independent external audit function to add veracity and objectivity for stakeholders.
5. The Board of Directors, Trustees and Governors to balance value creation (profitability) and value protection (risk).
If you want to know more about governance, internal audit and external audit then get in touch with our team at gbac. Not only are we regulated in performing statutory financial audits we are now certified by BSI to provide assurance on Quality Management Systems; the 3rd and 4th lines of defence.