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ERM glossary

Control effectiveness

فعالية الضوابط مدى نجاح الضابط في تقليل احتمالية الخطر أو أثره.

Control effectiveness is how well an internal control actually reduces the likelihood or impact of a risk. A control that exists on paper but fails in practice offers false comfort.

Rating effectiveness (for example: effective, partially effective, ineffective) is what drives the move from inherent risk to residual risk. Ineffective controls keep residual exposure high even when a control is 'in place'.

Related terms

Internal controlالرقابة الداخليةResidual riskالخطر المتبقيInherent riskالخطر الكامنRisk mitigationتخفيف المخاطر

Going deeper: Inherent vs residual risk, with worked examples shows the scoring arithmetic in full.

See it in Rukn ERM

Rukn ERM puts control effectiveness to work in a live, mobile, bilingual risk program — aligned to COSO ERM 2017.

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