Business Pitch Dictionary by pitch.dog
Enterprise risk & controls · Working

Material weakness

Also called: material control weakness

ELI5

A serious internal-control deficiency meeting the applicable reporting threshold.

Used in conversation

“Can we circulate material weakness with the assumptions and open questions marked?”

Pitch context

You will see “Material weakness” in board papers, contracts, policies, risk registers and compliance reports when the discussion reaches enterprise risk & controls.

Why it matters: In enterprise risk & controls, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 3

Direct term-level sources and supporting source families.