Enterprise Risk Management and the Five Lines of Corporate Defense

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