The first line of defense: all business departments and functional departments. Among them, risk management functional departments and internal audit functional departments are the core of the first line of defense. Front-line employees in various departments are the window of enterprises and the first group to contact with risk sources. They are responsible for identifying, reporting and initially managing risks in their daily business, which is the key to controlling risks in advance.
The second line of defense: risk management committee and risk management functional department. These two institutions are not directly involved in any business of the enterprise, but are mainly responsible for the overall organization, coordination and planning of enterprise risk management, real-time monitoring of risk management and internal control of the first line of defense, and at the same time assuming the core management and organizational responsibility of major risks, which is the key to controlling risks in the event.
The third line of defense: internal audit committee and internal audit functional departments. These two institutions are not directly involved in any business of the enterprise, but are mainly responsible for auditing, auditing and the work of the first-and second-line defense departments in post supervision. It is the key and last line of defense to control risks afterwards by checking the internal control system, auditing the compliance, rationality and risk controllability of the main business processes, auditing the economic responsibility of enterprise managers, auditing the effectiveness of enterprise information systems and auditing the financial statements of enterprises.
In addition, the top managers of enterprises have the responsibility to identify, analyze, monitor and manage the major risks of enterprises, and at the same time co-ordinate the management and supervision of the effective operation of the three lines of defense, which is the key to promote the implementation, improvement and stability of the three lines of defense of enterprise risk management. Use articles that control the overall situation
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.