Enterprise Risk Management and the Five Lines of Corporate Defense

The Journal of Enterprise Risk Management, Vol.1, Issue 1, 2015

26 Pages Posted: 6 Jan 2016

Date Written: 2015

Abstract

Analysis of the global financial crisis has served to highlight the requirement to improve existing enterprise risk management (ERM) oversight and this requirement particularly applies at the strategic level of the board and executive management. For an ERM program to operate effectively there needs to be appropriate risk oversight in place at all levels including strategic, tactical, and operational.

Applying the extended five lines of corporate defense oversight model to the ERM program can help to address this requirement by helping to ensure that all strategic, tactical, and operational roles and responsibilities are clearly outlined, and to provide a mechanism for holding individuals (or groups) to account for the performance of these duties.

Keywords: Enterprise, Corporate, Risk, Defense, Governance, Oversight

JEL Classification: G3, G30, G34, M14

Suggested Citation

Lyons, Sean, Enterprise Risk Management and the Five Lines of Corporate Defense (2015). The Journal of Enterprise Risk Management, Vol.1, Issue 1, 2015, Available at SSRN: https://ssrn.com/abstract=2711229

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