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Synectic

Building Organisational Resilience

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.

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

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.

Picture of Claire Connelly

Claire Connelly

Principal - Assurance and Advisory Services at Synectic. Claire has almost 20 years’ experience across the private and public sectors and is a volunteer board member. She is passionate about business performance and cares deeply about strong and empathetic leadership.
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About Synectic Wealth Synectic

Wealth Pty Ltd is the financial services division of the Synectic group of accountants, auditors, business advisers, self-managed super fund (SMSF) specialists, and financial advisers. We are based in Devonport, Launceston and Hobart and provide services across Tasmania.

 

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Information on this webpage has been prepared on a general advice basis only. We have not considered your objectives, personal or financial circumstances. You should consider the appropriateness of the advice for your circumstances before making any decision.

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