Risk Controls are the measures and procedures implemented to manage and mitigate identified risks, ensuring they remain within acceptable levels. These controls can be policies, standards, procedures, and physical or technical safeguards. Each risk can be linked to one or multiple Risk Controls, and as a result we can see for each Risk Control what risks are managed or impacted by it.
Benefits of Risk Controls
Risk Controls is an optional feature, risks can be managed without the Risk Control table being populated. However, there are many benefits to using Risk Controls:
- Consistency: Ensures that Risk Controls are applied consistently across the organization, reducing variability in risk management practices.
- Efficiency: Streamlines the risk management process by providing a centralized repository of proven controls, saving time and resources in developing new measures for each identified risk.
- Effectiveness: Enhances the effectiveness of risk management by using established, tested controls that have been linked to specific risks, ensuring appropriate responses.
- Accountability: Improves accountability by clearly documenting which controls are in place for each risk, who is responsible for their implementation, and how they are monitored.
- Compliance: Facilitates compliance with regulatory requirements by maintaining comprehensive records of risk controls and their application.
- Adaptability: Allows for easier updates and adaptations to controls as new risks emerge or existing risks evolve, ensuring the organisation remains responsive to changing conditions.
- Insight and Reporting: Provides valuable insights and aids in reporting to stakeholders by demonstrating how risks are managed and mitigated through specific controls, supporting transparency and informed decision-making.
Risk Control Types
Risk Controls are categorized into different Control Types, as follows:
| Control Type | Explanation | Examples |
Preventative |
Measures designed to prevent risks or undesirable events from occurring. These controls are proactive and aim to reduce the likelihood of risk incidents by eliminating potential causes or mitigating their impact before they manifest. |
|
Directive |
Provide guidance and directives to ensure desired outcomes. These controls establish clear expectations, standards, and instructions for employees to follow, promoting compliance and consistent behaviour within the organisation. |
|
Detective |
Measures designed to identify and detect risks or undesirable events that have already occurred. These controls provide mechanisms for monitoring, alerting, and reporting incidents, enabling timely responses to minimize impact. |
|
Corrective |
Measures implemented to correct and mitigate the impact of risks or undesirable events that have already occurred. These controls focus on restoring systems, processes, and operations to their normal state and preventing recurrence. |
|
Overview of Risk Control Features
Risk Controls are built up as a separate table in the system, as described in this article.
They may be assessed on a regular basis, with assessment records rating the design and effectiveness of a control.
Risk Controls can be linked to risks, to indicate that a respective control is relevant to the mitigation of the respective risk. It is then possible to view all Controls relevant to a Risk, as well as all Risks related to a Control.
Risk Control reporting is available to answer questions such as "Which Control is related to most risks?". With this information we can focus on making those most impactful Controls more effective.