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Dictionary by pitch.dog
Enterprise risk & controls · Working

Compensating control

Also called: mitigating control

ELI5

An alternative control used when the preferred control is unavailable or insufficient.

Used in conversation

“The board will ask what happens if compensating control moves outside tolerance.”

Pitch context

You will see “Compensating control” 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.

When the words have to travel

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Sources & evidence · 3

Direct term-level sources and supporting source families.