Data lineage is extremely important since unknowns in the data flow are a root cause of enterprise risk. Enterprise Risk Management and Data Governance professionals are teaming up to implement the “Three Lines of Defense” model (3LOD). The goal of 3LOD is to provide an early detection and risk mitigation warning system. Line 1 includes Management and Operations. Line 2 is composed of Risk Management and Compliance. Line 3 involves Internal Audit. To better understand the risk exposure, the different lines of defense must be able to find and verify the source and definition of the data. The key is to focus on those data elements that are critical to managing risk and protecting profitability.
