Three Line Defense Model

In order to ensure safe functioning of the organization, the so-called Three Line Defense Model is in place at TAURON Group and it constitutes an internal control system. It includes:

As part of the first line of defense – functional control performed by:

  • lower and middle level management,
  • the Group’s other personnel.

As part of the second line of defense – independent control performed by the following functions:

  • risk management,
  • compliance assurance,
  • safety assurance,

as part of the third line of defense – institutional control performed by the internal audit.

The results of the Internal Audit Team’s activities are reported directly to the senior management and the Audit Committee/Supervisory Board. The way the so-called Three Line Defense Model is organized is illustrated in Figure below.

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