Enterprise risk & controls · Working

Operating effectiveness

Also called: control effectiveness

ELI5

Whether a control operated consistently and as designed during the period tested.

Used in conversation

“Add operating effectiveness to the risk register with an owner and mitigation.”

Pitch context

You will see “Operating effectiveness” 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.