Too Small for the 3 Lines of Defense? Think Again (and get my free guide!)
If you’re ready, click here to get my free Quickstart Guide.
If you’ve ever thought, “We’re too small for a Three Lines of Defense model,” you’re not alone. But here’s the truth: the smaller the team, the more essential the structure.
At many small and mid-sized banks and credit unions, the compliance officer wears all the hats—writing policies, implementing controls, monitoring risks, managing exams, and keeping up with constant regulatory change. It's exhausting. And it’s unsustainable.
When one person or team owns everything, gaps are inevitable:
Accountability and objectivity blur
Separation of duties erodes
Strategic oversight is sidelined
Burnout creeps in
That’s where the 3 Lines of Defense model comes in—not as a luxury, but as a lifeline. This flexible, scalable governance structure creates clarity in how risk is owned (1st Line), managed (2nd Line), and assured (3rd Line). Even in a small institution, this model helps right-size roles, streamline collaboration, and establish clear escalation paths.
When roles are clearly defined, risk management becomes proactive, not reactive. Your team can grow with confidence, exams become less stressful, and you free up space for strategic thinking.
Bottom line? You’re not too small for the 3 Lines of Defense. You’re too valuable not to have it.
