The Organizational Model of Operational Risk Management Basing on Three Lines of Defence for Vietnamese Banks

Abstract

This article aims to cenalyze the role and responsibility of three lines of defence which are mentioned in the BCBS’s principles for operational risk management. Besides, it evaluates Vietinbank’s organizational model of operational risk management based on three lines of defence. From that, this article designs the general organizational model of operational risk management for Vietnamese banks. This model creates a safe three-layer net of operational risks management, hence it protects banks as well as mitigates the losses caused by banks’ operational risks.