Segregation of duties: Difference between revisions
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imported>Doug Williamson (Add link.) |
imported>Doug Williamson (Add links.) |
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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, | 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. | ||
etc. | |||
Within each department, responsibilities are split & access rights to systems & information is on a need to have basis to perform the tasks. | 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== | ==See also== | ||
* [[Back office]] | |||
* [[Compliance]] | * [[Compliance]] | ||
* [[Control]] | * [[Control]] | ||
* [[Deal]] | |||
* [[Duty]] | * [[Duty]] | ||
* [[Four eyes]] | * [[Four eyes]] | ||
Line 19: | Line 32: | ||
* [[Fraud Advisory Panel]] | * [[Fraud Advisory Panel]] | ||
* [[Front office]] | * [[Front office]] | ||
* [[Middle office]] | |||
* [[Operations]] | * [[Operations]] | ||
* [[Reporting]] | |||
* [[Settlement]] | |||
[[Category:Ethics]] | [[Category:Ethics]] | ||
[[Category:Treasury_operations_infrastructure]] | [[Category:Treasury_operations_infrastructure]] |
Revision as of 16:55, 9 May 2022
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.
- Segregation of duties - dealing, settlement and reporting
- “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.