BUSINESS INFORM JOURNAL.

УКР

ENG

Search:

REGISTRATION CERTIFICATE

KV #19905-9705 PR dated 02.04.2013.

FOUNDERS

RESEARCH CENTRE FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS (KHARKIV, UKRAINE)

According to the decision No. 802 of the National Council of Television and Radio Broadcasting of Ukraine dated 14.03.2024, is registered as a subject in the field of print media.
ID R30-03156

PUBLISHER

Liburkina L. M.

SITE SECTIONS

Evolution of Approaches to Risk Management in Organizations
Zoidze D. R., Gubarev O. O.

Zoidze, Diana R., and Gubarev, Oleksandr O. (2021) “Evolution of Approaches to Risk Management in Organizations.” Business Inform 4:276–285.
https://doi.org/10.32983/2222-4459-2021-4-276-285

Section: Management and Marketing

Article is written in Ukrainian
Downloads/views: 2

Download article (pdf) -

UDC 330.131.7

Abstract:
The article is aimed at studying the evolution of approaches to risk management in organizations. As result of the carried out study, three existing approaches were identified: the «Three Lines of Protection» model (2013), the «Three Lines» model (2020), and the «Dynamic Risk Management» model (2020). It is proposed to consider the «Three Lines of Protection» model as a transition from non-systemic risk management in organizations to a structured vision of this process with a clear definition of the responsibilities of key participants. The article explains the advantages and disadvantages of this approach. Its advantages include simplicity and clarity in use in practice. Among the shortcomings of the model are the following: an overly structured approach to risk management in organizations; too cautious attitude to possible risks; dubious versatility of the model; imperfection of its structure. Three directions for possible improvement of the model are defined. It is identified that in 2020 there was an updated approach to risk management in organizations – the «Three Lines» model. A comparison of the «Three Lines of Protection» model with the «Three Lines» model was carried out. The main advantages of the new approach are determined. The emergence of an alternative vision of the process of risk management and control in organizations against the background of new social challenges – the «Dynamic risk management» is researched. The advantages of this approach include its priority areas in risk management in organizations, i.e.: risk management taking into account their consequences, risk management based on actions, risk management with an orientation towards digital technologies. The differences between traditional models and the newest approach are specified. It is determined that each of the three principles of the latest approach improves the quality of risk management in organizations as participants in the survey conducted by Gartner company. Purpose of further research in this direction be the institutional registration of coordinated interaction between the two directions of the modern model of risk management and control of the risks.

Keywords: risk management, «Three Lines of Protection» model, «Three Lines» model, dynamic risk management, card of warranties, compliance functions.

Fig.: 5. Tabl.: 3. Bibl.: 14.

Zoidze Diana R. – Candidate of Sciences (Economics), Associate Professor, Associate Professor, Department of Management and Public Administration, National Pharmaceutical University (53 Pushkіnska Str., Kharkіv, 61002, Ukraine)
Email: [email protected]
Gubarev Oleksandr O. – Candidate of Sciences (Economics), Associate Professor, Associate Professor, Department of Management of Culture and Social Technologies, Kharkiv State Academy of Culture (4 Bursatskyi Slope, Kharkiv, 61057, Ukraine)
Email: [email protected]

List of references in article

Potter, P., and Toburen, M. “The 3 Lines of Defense for Good Risk Management“. Risk Management. 2016. http://www.rmmagazine.com/2016/06/01/the-3-lines-of-defense-for-good-risk-management/
“The Three lines of Defence“. Institute of Internal Auditors. https://www.iia.org.uk/policy-and-research/position-papers/the-three-lines-of-defence/
Silenok, D. “Model 3LOD - «Tri linii zashchity»“ [Model 3LOD - "Three Lines of Defense"]. iTeam. April 04, 2019. https://blog.iteam.ru/model-3lod-tri-linii-zashhity/
Tokun, M., and Sadova, N. “Linii zashchity kompanii. Karta garantiy“ [Company Lines of Defense. Warranty Card]. Bukhgalterskiy uchet. Nalogi. Audit. February 19, 2019. https://www.audit-it.ru/articles/audit/a104/979017.html
Hoefer, E., Cooke, M., and Curry, T. “Three lines of defense-Failed promises and what comes next“. Reuters. Financial Regulatory Forum. September 8, 2020. https://www.reuters.com/article/bc-finreg-risk-management-three-lines-of-idUSKBN25Z2FN
“The Three Lines of Defence Model (3LOD) has been updated - what does this mean for Internal Audit?“ BDO. October 19, 2020. https://www.bdo.co.uk/en-gb/insights/advisory/risk-and-advisory-services/the-three-lines-of-defense-model-has-been-updated-what-does-this-mean-for-heads-of-internal
Marks, J. T. “Compliance snubbed? Three Lines Model or Enterprise Resiliency Model?“ Board and Fraud. https://boardandfraud.com/2020/08/21/three-lines-model-excludes-compliance-and-the-general-counsel/
Marks, N. “The Three Lines of Defense Model is no more“. Norman Marks on Governance, Risk Management, and Audit. July 20, 2020. https://normanmarks.wordpress.com/2020/07/20/the-three-lines-of-defense-model-is-no-more/
“Klyuchevyye printsipy v osnove obnovlennoy modeli «Trekh liniy zashchity»“ [Key Principles at the Heart of the Updated Three Lines of Defense Model]. Teoriya i praktika upravlencheskogo ucheta. July 28, 2020. https://gaap.ru/articles/Klyuchevye_printsipy_v_osnove_obnovlennoy_modeli_Trekh_liniy_zashchity/
Tysiac, K. “Three Lines Model for Risk Management gets major update“. Journal of Accountancy. July 20, 2020. https://www.journalofaccountancy.com/news/2020/jul/3-lines-of-defense-model-for-risk-management-gets-major-update.html
Makarova, V. A. “Organizatsiya sistemy korporativnogo risk-menedzhmenta v nefinansovoy kompanii i yee otsenka s pomoshchyu KPI“ [Organization of a Corporate Risk Management System in a Non-financial Company and Its Assessment Using KPIs]. Upravleniye finansovymi riskami. 2017. https://publications.hse.ru/mirror/pubs/share/folder/5jrd85jejw/direct/201379449.pdf
Dontsova, L. V., and Sharamko, M. M. “Metodologicheskiye problemy vnutrennego kontrolya v sisteme mezhdunarodnykh standartov“ [Methodological Problems of Internal Control in the System of International Standards]. Vestnik Bryanskogo gosudarstvennogo universiteta. 2015. https://cyberleninka.ru/article/n/metodologicheskie-problemy-vnutrennego-kontrolya-v-sisteme-mezhdunarodnyh-standartov
Murray, M. “Dynamic Risk Governance: Linking Strategy and Risk Management“. Sorporate Sompliance Insights. February 15, 2021. https://www.corporatecomplianceinsights.com/dynamic-risk-governance-strategy-risk-management/
“Gartner: pandemiya koronavirusa pokazala, chto privychnyye metody upravleniya riskami ustareli“ [Gartner: The Coronavirus Pandemic Shows Habitual Risk Management Practices Are Outdated]. CRN. April 01, 2020. https://www.crn.ru/news/detail.php?ID=144248

FOR AUTHORS

License Contract

Conditions of Publication

Article Requirements

Regulations on Peer-Reviewing

Publication Contract

Current Issue

Frequently asked questions

INFORMATION

The Plan of Scientific Conferences

OUR PARTNERS

Journal «The Problems of Economy»

The site and its metadata are licensed under CC BY-SA.

Write to webmaster