Oversight and the Five Lines of Corporate Defense

Abstract

Since its publication the book and the Value Preservation Imperative: Bulletproof Your Corporate Program has been critically acclaimed by a host of distinguished corporate commentators.It has received a wide spectrum of positive feedback from an eclectic mix of readers and has been described as the seminal book on corporate defense management (CDM), and, the definitive guide to implementing a comprehensive corporate defense program. The publishers Taylor & Francis have selected this book as one of a limited number of titles whereby a free chapter download is now available to the public online. Chapter 7 of this book entitled and the Five Lines of Corporate Defense has been selected for public availability. It addresses the requirement for corporate oversight and the nature of corporate supervision. It goes on to outline the extended five lines of corporate oversight and their various roles and responsibilities in the context of a lines of defense model. The five lines of corporate defense includes the critical (but often overlooked) strategic oversight roles of Executive Management and the Board of Directors as the all important 4th and 5th lines of defense. This chapter specifically addresses the following issues: 7.1 Oversight of the Corporate Program - An Oversight Framework - Lines of Approach 7.2 The Five Lines of Corporate Model - First Line of Defense: Operational Line Management - Second Line of Defense: Tactical Oversight Functions - Third Line of Defense: Independent Internal Assurance - Fourth Line of Defense: Executive Management - Fifth Line of Defense: Board of Directors 7.3 External Gatekeepers and Watchdogs - External Auditors - Shareholders - Rating Agencies - Regulators - Other External Stakeholders