What do you mean by the three lines of defense for compliance?

Legal analysis: The three lines of defense for compliance are simply to control various risks and manage various operational processes. "Three lines of defense" is an internal checks and balances and supervision mechanism set up by financial institutions to guard against internal risks. Financial supervision departments such as banks, securities and insurance industries have defined "three lines of defense" in their respective regulatory documents.

Legal basis: anti-monopoly compliance guide for operators

Nineteenth risk identification operators can identify major antitrust risks according to their own scale, industry characteristics, market conditions, relevant provisions of the anti-monopoly law and law enforcement environment. For the main points of compliance risk, please refer to Chapter III of this guide.

Article 20 A risk assessment operator may, in accordance with the relevant provisions of the Anti-monopoly Law, analyze and evaluate the source, possibility of occurrence and severity of consequences of compliance risks, and rank compliance risks.

Operators can establish compliance risk assessment procedures and standards that meet their own needs according to actual conditions.