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dc.identifier.citationGrech, M. (2019). The changing risk scenario’s implications on banks’ three lines of defence (Master's dissertation).en_GB
dc.description.abstractPurpose: This study aims to identify how local banks' three lines of defence are adapting to the changing risk environment. It seeks to identify the core emerging risks faced by Maltese banks in comparison to the risks of most concern to euro area banks. It also examines how local credit institutions are developing their three lines of defence framework to mitigate such risks more effectively, and lastly, assesses whether any particular challenges exist that impede Maltese banks' ability to enhance controls. Design: Primary data was obtained by conducting semi-structured interviews with a number of domestic core, non-core, and international credit institutions, as well as a 'Big 4' audit firm. In order to ensure relevant findings and a valid discussion exercise, secondary data was examined prior to designing the structure of the interview. Findings: It was observed that both Maltese credit institutions and euro area banks are significantly concerned about risks related to cybercrime, a low interest rate environment, and reaction to regulation, amongst others. A number of inconsistencies in the nature of risks faced by local credit institutions and euro area banks, however, still exist. Findings also show that the main changes in the risk culture adopted by local banks include the provision of adequate training to first liners, and the enhancement of business relations between personnel in different lines. Lastly, it was observed that some of the main challenges faced by Maltese banks include the availability of adequately skilled personnel, the lack of practicality in certain sophisticated systems of technology, and a risk appetite that only seeks to consolidate. Conclusions: The business of banking is becoming increasingly complex and credit institutions are required to enhance the way their three lines of defence model functions. They are doing so by means of significantly adapting their risk culture with the aim of becoming more agile and responsive to the changing risk environment. Value: This study may serve as an eye-opener to local banks which choose to solely stick to traditional systems of controls. It may also alert practitioners within the local banking industry about emerging risks which they are not particularly familiar with.en_GB
dc.subjectBanks and banking -- Maltaen_GB
dc.subjectRisk management -- Maltaen_GB
dc.subjectAuditing, Internal -- Maltaen_GB
dc.titleThe changing risk scenario’s implications on banks’ three lines of defenceen_GB
dc.rights.holderThe copyright of this work belongs to the author(s)/publisher. The rights of this work are as defined by the appropriate Copyright Legislation or as modified by any successive legislation. Users may access this work and can make use of the information contained in accordance with the Copyright Legislation provided that the author must be properly acknowledged. Further distribution or reproduction in any format is prohibited without the prior permission of the copyright holder.en_GB
dc.publisher.institutionUniversity of Maltaen_GB
dc.publisher.departmentFaculty of Economics, Management and Accountancy. Department of Accountancyen_GB
dc.contributor.creatorGrech, Matthew-
Appears in Collections:Dissertations - FacEma - 2019
Dissertations - FacEMAAcc - 2019

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