Why Organisational Resilience Matters
Businesses today face an unprecedented pace of change. From political and environmental challenges to rapid digital transformation, the need to adapt and thrive has never been more critical. Resilient organisations do more than recover from disruptions; they emerge stronger and better equipped for the future.
Resilience goes beyond business continuity.
While continuity is about returning to normal operations, resilience focuses on continuous improvement, enabling organisations to navigate uncertainty and seize opportunities.
Audit and assurance services play a pivotal role in building this resilience by enhancing governance, risk management, and adaptability.
The Three Lines Model: A Framework for Resilience
The “Three Lines Model”, or “Three Lines of Defence”, illustrates how different roles in an organisation collaborate to ensure robust governance and risk management:

First Line – Managing Risks
The First Line comprises managers and staff who own and manage day-to-day operations and risk management. They:
- Identify and manage risks
- Implement and monitor internal controls
- Ensure compliance with operational goals
Second Line – Overseeing Risks
The Second Line monitors risk, providing oversight and support for the First Line. They focus on:
- Regulatory compliance
- Risk management frameworks
- Security, safety, and quality assurance
They provide policies, tools, and techniques to enable risk and compliance to be managed in the First Line. By monitoring and stress-testing, the Second Line ensures consistent risk definitions, measurement, and management.
Through management, Line 2 roles are accountable to the governing body.
Third Line – Independent Assurance
The Third Line, generally led by internal auditors, evaluates the effectiveness of the first two lines. They:
- Provide objective assurance and strategic insights
- Review the design and effectiveness of internal controls
- Offer recommendations for continuous improvement
The Third Line reports to those charged with governance through the audit committee.
External Audit / Regulators
Regulators often set governance and risk management requirements and may conduct controls reviews.
Specialist external auditors consider governance and risk management where it is relevant to the organisation’s accounting processes and financial information.
Often considered the “Fourth Line”, this external assurance complements the efforts of Lines 1, 2, and 3 by ensuring compliance with legislative and stakeholder expectations.
How Audit and Assurance Build Organisational Resilience
Audit and assurance activities are integral to strengthening an organisation’s ability to adapt and thrive.
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Internal Audit and Assurance
Strategic Insights
Internal auditors focus on long-term organisational success. They offer:
- Independent, risk-based evaluations
- Strategic advice to governing bodies
- Benchmarking, industry insights, and recommendations for continuous improvement
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External Audit
Confidence and Accountability
External auditors:
- Validate the reliability of financial statements, enhancing stakeholder confidence.
- Help identify operational inefficiencies and mitigate risks, such as fraud or vulnerabilities.
Beyond Business Continuity: Embedding Organisational Resilience
To build resilience, organisations must shift from reactive continuity planning to proactive resilience strategies. Integrated audit and assurance teams contribute by:
- Embedding resilience into audit objectives
- Supporting system transformations and change initiatives
- Establishing metrics for continuous monitoring and improvement
Key Question:
Does your organisation focus on continuity or resilience? If it’s the former, do you have the capabilities to make the shift?
Take the next step
Organisational resilience is not a one-off project — it’s an ongoing effort. Audit and assurance specialists can help embed resilience into your processes, ensuring your organisation thrives in the face of constant change.
Contact our team today to assess your current resilience, identify opportunities for improvement, and build a stronger foundation for the future.