AVBOB Integrated Annual Report 2018

To give effect to the above approach, the Group relies on four lines of defence with regard to risk management to safeguard internal control. Responsibility and accountability have been established within each line. The “four lines of defence” that support risk management and internal control within the Group are as follows: • First line – day-to-day risk management Management and employees are responsible for the identification, assessment, monitoring and reporting of risks. • Second line – oversight The Chief Risk Officer, Independent Statutory Actuary, the Risk Management Committees and Compliance Function provide assurance that risks are managed across the business units. • Third line – internal assurance provider The Group’s Internal Audit Department will provide assurance on the effectiveness of risk management processes. • Fourth line – external assurance provider External Audit provide assurance that the financial statements provide a fair reflection of the financial position and performance of the company in all material respects. 31