The three lines of defence model of corporate governance makes the roles and responsibilities for risk management and assurance clear, ECIIA says.
The comment was made in ECIIA’s response to the European Insurance and Occupational Pensions Authority’s (EIOPA) consultation on its Proposals for Guidelines on the System of Governance.
“This model is increasingly recognised as an international benchmark to effectively coordinate different organisational functions toward a comprehensive risk management system,” it said in the response.
The three lines of defence model gives equal weighting to the controls put in place by management, the assessment of those controls, and a final independent review of them by internal audit.
Download an explanation of the Three lines of defence model.