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OPERATIONAL-RISK-MANAGEMENT5 MIN READ

Three Lines Without Blame

Clarify first-line, second-line, and internal-audit roles for an operational risk issue.

The Model Is About Contribution The Three Lines Model is often misused as a wall between teams. In a healthy operating model, it clarifies how roles work together. Management owns outcomes and risk decisions. Risk and compliance functions provide specialist advice, monitoring, and challenge. Internal audit provides independent assurance to the governing body. Why Blurred Roles Create Risk Blurred roles slow remediation. If Risk writes the process fix, the first line may not own it. If the first line marks its own issue closed without challenge, residual exposure may be understated. If Audit helps design the fix, independence can be…

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