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"Thank you everyone for replying. I´ll try and be more specific. I was hoping to find a simple example of a risk event along with a critical control(s) and show how the control is measured or followed through such that its perfomance meets a minimum…"
Hello everyone, Does anyone have information (general or otherwise) regarding performance standards for controls. I´m trying to come up with some good examples to present at risk workshops. By showing a few I hope to get the message across that…
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Performance standards for controls can be a tricky subject but the development of these becomes easier once controls are put in context of the objective and risk that the control is related to. Think of in these terms:
What is the Risk?
What parts of the risk are we attempting to mitigate or eliminate with controls.
The outcome is a statement of objective for the control / statement of control. "all new user access to the financial system will be approved by the immediate supervisor and the application owner"
Performance standard is 100% two approvals and by these stated roles
In terms of Key Performance Indicators we can broaden the concept of performance standard to include a tolerance:
Risk: not enough product will be produced
Control: average of 10 product will be created each hour
Performance Standard can be strict at "10" or at a tolerance of a lower number, lets say "7" knowing that we could achieve within 7 to maybe 15 product per hour.
Any number less than "7" raises a notification or warning that the risk will not be mitigated.
Hope this helps.
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