What is the difference between mitigating and compensating controls?
What is the difference between mitigating and compensating controls?
In the simplest analysis, the difference is this: mitigating controls are meant to reduce the chances of a threat happening while compensating controls are put into place when specific requirements for compliance can’t be met with existing controls.
What are compensating controls?
A compensating control, also called an alternative control, is a mechanism that is put in place to satisfy the requirement for a security measure that is deemed too difficult or impractical to implement at the present time.
What are examples of compensating controls?
Examples of Compensating Controls A single employee has the duties of accepting cash payments, recording the deposit, and reconciling the monthly financial reports. To prevent errors and/or fraud, additional oversight is required.
Which type of control is considered to be a mitigating control?
A mitigating control is type of control used in auditing to discover and prevent mistakes that may lead to uncorrected and/or unrecorded misstatements that would generally be related to control deficiencies.
What is meant by mitigating control?
Mitigating controls are, as stated in the definition, methods used to reduce the overall impact of a threat. The mitigating controls are therefore assigned to appropriate threats.
What are the 3 types of internal controls?
There are three main categories of internal controls: preventative, detective and corrective. Internal controls are characteristically summed up as a series of policies and procedures or technical protections that are put in place to prevent problems and protect the assets of a business organization.
How do you mitigate segregation of duties?
Compensating/mitigating controls may exist to mitigate the risks resulting from a lack of appropriate segregation of duties. These controls include audit trails, reconciliation, supervisory reviews and transaction logs.
What are 3 types of risk mitigating controls?
The 5 Most Important Risk Mitigation Controls
- Business Impact Analysis. The BIA is one of the most important controls.
- Recovery Strategy. Once you have the results from a good BIA you can use them as the foundation for your second control, the Recovery Strategy.
- Recovery Plan.
- Recovery Exercises.
- Third-party Suppliers.
What is COSO control Framework?
The COSO Framework is a system used to establish internal controls to be integrated into business processes. Collectively, these controls provide reasonable assurance that the organization is operating ethically, transparently and in accordance with established industry standards.
What are the 4 mitigation approaches?
The four types of risk mitigating strategies include risk avoidance, acceptance, transference and limitation.