It is difficult to keep up with the IT risks businesses face today. There are constant changes in best practices and technology for protecting a business and the data in its possession. Since the COVID-19 crisis, many people have worked from home, which makes businesses more vulnerable to operational disruptions and cyber-attacks. Among the most effective means of ensuring a business takes the proper steps to mitigate Risk is by developing Internal controls that ensure procedures, policies, and processes protect valuable corporate assets and keep a business intact and secure. Internal controls help employees do their jobs in a manner that protects the business, clients, and the bottom line.

What Is Internal Control?

Internal control is a process that mitigates risk and reduces the probability of unwanted outcomes. Defining and implementing controls take time, but make a business more resilient to risk and stronger. The controls are used by accounting, financial, security, management, and operational teams. They

• Ensure the accuracy and reliability of financial information

• Prevent fraudulent business activity

• Safeguard valuable, confidential, and sensitive information

• Ensure compliance

• Improve effectiveness and efficiency of business operations

Data Security

Built into information security programs, internal control for businesses ensures effective programs are in place. It is essential to know how a security compliance program performs. If a cyber attack occurs, outside regulators examine the program to determine if a business makes an effort at compliance or goes through the motions.

Types of Internal Controls

Five types of internal controls help businesses develop effective and unique internal controls. They are

• Control environment

• Assess risk

• Control activities

• Monitor

• Conduct internal audits

The environmental control tool consists of the basis and framework of an internal control program that includes the structure and process for creating the foundation of a business’s internal controls. It consists of a business’s ethical values and integrity, parameters for when and how a board carries out responsibilities, and rewards and incentives. To effectively build internal controls, a business first understands the risks they control and what they are up against regarding external and internal risks. It identifies risks in every aspect of a business, inside and out of the organization, and mitigates or brings them to an acceptable level. Control activities carry out risk management strategies in the procedures and policies that govern employee activity. The activities are present throughout a company and identify, monitor, and prevent the manifestation of risks.Communication and information are the most significant parts of a business’s internal controls. There is no point in having internal controls if the internal control tool is unable to fix a problem when the tool shows a process malfunction.Monitoring gauges the effectiveness of internal controls and ensures a business addresses any control gaps. An internal audit tests the effectiveness of internal controls. It offers insight into how they perform.

Best Source of Internal Control Tools

AdaptiveGRC has various modules to help manage internal control compliance, risks, and audits. They help clients find the Internal Control Tool that automates tasks like scheduling an audit, identifying areas of risk exposure or non-compliance, developing an action plan to address identified issues, tracking recommendations, and generating reports.

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