The 3 lines of defense model evolves into automation

The famous model of three lines of defense shows clear nuances of evolution towards automation, since the risks that companies face on a daily basis have caused them to realize the value of carrying out internal controls or establishing audits. permanent.

Appeared in 2013, the idea of ​​this methodology is to establish three lines for the management of internal control, based on an effective system with which the internal communication process is improved, both in risk management and control.

All these problems are what the GlobalSuite Solutions solution solves, since the audit projects, in addition to being automated, are integrated with the company’s information systems, processes and standards.

Three lines of defense: automation

The first of these lines of defense focuses on operational management, which is carried out by so-called operational managers.. These have the mission of ensuring compliance with the objectives of the organization and comply with the internal control system, in addition to being responsible for the execution and maintenance of said system. In this first line, the middle management of a company must design and implement a series of procedures that serve as control measures, that allow operating risks to be controlled and thus meet the objectives set.

The second of the lines has the function of designing and supporting the fulfillment of all the actions of the first. His attributions include the supervision and control of risks, for which he offers support to the internal managers of the first line in the definition of the risk control system. In addition, the people who make up this second line are responsible for ensuring regulatory compliance of the organization (both in terms of applicable laws and regulations as well as internal policies and standards), as well as checking that the financial information generated and reported by the organization is complete and accurate.

Finally, the last line of defense is to implement the internal audit function that, through someone independent and objective, attest that the above two lines serve their purpose. Thanks to this audit, a guarantee is obtained that risk management and internal controls are being fulfilled effectively, although it also analyzes the good practices applied by the first and second line of defense based on the achievement of the objectives of the organization.

The three lines of defense model evolves towards automation

Solutions

GlobalSuite Solutions makes it possible to address the implementation of the three lines of defense model, both from a consultancy point of view and from the centralization and automation of this process in a Governance, Risk and Compliance (GRC) platform.

The great advantage provided by the platform is that, with it, all the managers involved will be able to access the same information point, have multidisciplinary risk management with the ability to extract filtered information, and establish an audit system that collects all the necessary evidence proposed in this model.

What does GlobalSuite Solutions propose

The company’s proposal is a software GRC that helps in optimizing processes and reducing the uncertainty of risks, security, continuity, auditing and Compliance, so that companies are safer and more resilient, as well as allowing them to effectively manage their compliance.

The goal of software It is to optimize the management of the system, in such a way that manual methods that reduce the effectiveness of the team are left behind and time is dedicated to what is really important. All this is achieved thanks to the software allows custom configuration of methodologies, catalogs and compliance requirements.