The Three Lines (of Defence) model is a fantastic way to manage risk and ensure everything runs smoothly within an organisation. It breaks down roles and responsibilities into three layers, each offering a unique perspective on risk management and control.
>> We have an updated article on the The Three Lines, here
The First Line is all about operational management. These are the people on the front lines, managing risks and implementing controls in their daily activities. They’re the ones who spot potential issues and handle them right away.
At Littlechild & Haley, we can help by providing training and tools to make sure your team is equipped to identify and manage risks effectively.
The Second Line involves risk management and compliance teams, such as health & safety, environment, financial compliance, internal controls, data protection. They support the first line by developing frameworks, policies, and procedures to manage risks. They also keep an eye on compliance and provide guidance on best practices. Littlechild & Haley can step in here with expert consultancy services to help you build robust risk management frameworks and ensure everything is in line with your risk appetite.
The Third Line is the internal audit function. These auditors provide an independent check on how well the first and second lines are doing their jobs. They conduct audits and reviews to evaluate the effectiveness of risk management, control, and governance processes. Littlechild & Haley have in depth expertise as Internal Auditors and can assist by conducting thorough internal audits and offering actionable insights to improve your risk management practices.
An Assurance Map ties it all together by visually representing the assurance activities across your organisation. It helps identify any gaps or overlaps in coverage, ensuring all significant risks are monitored and managed. Littlechild & Haley can create and maintain this map, ensuring your risk management efforts are comprehensive and effective.
