A new model for governance and risk management issued Monday 20 July 2020 by the Institute of Internal Auditors (IIA) makes major updates to the Three Lines of Defense model that has been popular for years.
Called “The Three Lines Model,” the new approach is designed to help organizations identify structures and processes that best assist the achievement of objectives and facilitate strong governance and risk management.
In the previous model, the three lines of defense were represented by management control as the first line, risk and control monitoring as the second, and independent assurance through the internal audit function as the third.
The new model is designed to better identify and structure interactions and responsibilities of management, internal audit, and those charged with governance to achieve more effective alignment, collaboration, accountability, and objectives.
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