View source for Segregation of duties

Segregation of duties means splitting responsibilities within a process between different individuals or parts of an organisation, to reduce the risk of fraud.

Having dual controls, for example:
*Capture by one person & verification or review by another person
*Segregating tasks between departments. 


In a larger organisation each of the following departments cannot perform tasks for other departments, each is separate - front office, risk management, compliance, legal, operations, finance, etc. 

Within each department, responsibilities are split & access rights to systems & information is on a need to have basis to perform the tasks.


:<span style="color:#4B0082">'''''Segregation of duties - dealing, settlement and reporting'''''</span>

:“The front office does the deal, but doesn’t settle the money. 

:The back office settles the money, but doesn’t do the deal.

:Historically, the middle office is a control function that does the reporting and ensures that system controls are enforced."

:''Naresh Aggarwal, associate policy and technical director, Association of Corporate Treasurers, May 2022.''


==See also==
* [[Back office]]
* [[Compliance]]
* [[Control]]
* [[Deal]]
* [[Duty]]
* [[Four eyes]]
* [[Fraud]]
* [[Fraud Advisory Panel]]
* [[Front office]]
* [[Middle office]]
* [[Operations]]
* [[Reporting]]
* [[Settlement]]


==Other resource==
*[https://www.treasurers.org/node/8446 ACT masterclass - segregation of duties]

[[Category:Ethics]]
[[Category:Treasury_operations_infrastructure]]