Controls

Common types of controls

In a compliance program, there are mechanisms or measures put in place to ensure that an organization’s activities align with relevant laws, regulations, policies, and standards. These controls help manage risks and ensure adherence to ethical and legal standards.

Here are some common types found in compliance programs:

1. Administrative: These involve policies, procedures, and guidelines established by management to ensure compliance. They include things like employee training, documented processes, and assigning responsibilities.
2. Technical: They use technology to enforce compliance. This can include access controls, encryption, authentication mechanisms, and monitoring systems to detect and prevent unauthorized access or activities.
3. Physical: These involve measures to protect physical assets and resources. Examples include locks, security cameras, access badges, and restricted access to sensitive areas.
4. Detective: They are designed to identify compliance breaches after they occur. This includes activities such as audits, monitoring systems, data analysis, and regular reviews of processes and procedures.
5. Preventive: They aim to stop compliance violations before they happen. These can include pre-approval processes, segregation of duties, risk assessments, and implementing safeguards to prevent unauthorized actions.
6. Corrective: They are implemented in response to compliance violations or incidents. They include actions taken to mitigate the impact of breaches, such as disciplinary measures, process improvements, and implementing corrective action plans.
7. Monitoring and Reporting: These involve ongoing monitoring of compliance activities and reporting mechanisms to track performance, identify issues, and communicate with relevant stakeholders. This can include compliance dashboards, reporting tools, and escalation procedures.

By implementing a combination of these controls tailored to the specific risks and requirements of the organization, compliance programs can effectively manage and mitigate compliance risks while fostering a culture of integrity and accountability.

For more information, please read the Key Concepts and Terminology section in Compliance Launchpad.