What is the principle of 'segregation of duties'?

The principle of 'segregation of duties' involves separating tasks and responsibilities among different individuals or teams within an organization. This approach is crucial for reducing the risk of fraud, errors, and conflicts of interest. By ensuring that no single individual has control over all aspects of any critical process, the organization enhances its internal controls.

For example, in a financial setting, the person responsible for authorizing a transaction should not be the same person who manages the record-keeping of that transaction. This separation makes it difficult for one person to commit fraudulent activities without detection, as collusion with another individual would be required. Additionally, this practice ensures that a system of checks and balances is established, which is fundamental for accountability and transparency within the organization.

In the context of information security management, segregation of duties helps protect sensitive systems and data from unauthorized access or manipulation. It fosters a culture of diligence and scrutiny, further reinforcing the integrity of operations. This principle is widely recognized in various regulatory and compliance frameworks, underscoring its importance in safeguarding organizational assets.