Three lines of defence a struggle, say op risk heads
Separation "theoretically perfect" but "practically, hugely flawed" says UBS's Hunt
Most large financial firms employ the 'three lines of defence' model for operational risk management, but the model is confusing for risk managers at best and counterproductive at worst, delegates at OpRisk Europe heard on June 14 and 15.
Sam Lee, head of operational risk for Europe, the Middle East and Africa at Sumitomo Mitsui Banking Corporation, said the standard model had actually held some firms back from embedding operational risk frameworks. Specifically, he said the efforts of some
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