About Wednesday’s Words: Whatever the nature of our role or stage of our career, we can benefit by continually learning. Learning the language of those leading our organisations, and terminology associated with technology, can be positively impactful. It’s with these ideas in mind that I publish Wednesday’s Words.  Check Exceptional EA each Wednesday, or whenever you like, for terms to help elevate your acumen and add depth to your business insights.

Key controls is the latest in this series of risk management terms. We’ve already covered risk management itself, as well as risk appetite, inherent risk, residual risk and internal controls,

The term “key controls” refer to those that must operate effectively in order to reduce risk to a level deemed acceptable. These are the primary procedures on which your organisation relies in order to mitigate risk and prevent fraud.

Example: In developing an annual operating budget, the management team will engage in consultations and reviews of one or more drafts of the budget. Management will then present its final draft of the proposed budget to your board’s finance committee before seeking board approval. After the finance committee is satisfied with the final draft budget, it will recommend board approval of the proposed budget. While the finance committee plays an important role, it’s the board’s review and (once satisfied with the proposed budget) approval that represents the key control.

 If you’d like to elevate your group’s acumen, and awareness of risk management, I can help. Click here to drop a note to enquire about having me present my Introduction to Risk Management training session for your team or conference.

Enjoy exploring and learning more.

To continue building your understanding of terminology associated with AI, risk management and other business priorities already covered in Wednesday’s Words, enter “vocabulary” in my website search field.

Why should you turn to this feature? A strong vocabulary can contribute to our career success. Whether you’re conversing with senior colleagues, other stakeholders or your peers, the extent to which you’re familiar with language used around executive tables can impact others’ perceptions of your professionalism and business insights. It’s also helpful to ensure currency with terminology used in meetings you may attend or record.