Four Eyes Principle

From Open Risk Manual

Definition

The Four Eyes Principle is a widely used Internal Control that requires that any activity by an individual within the organization that has a material risk profile must be controlled (reviewed, double checked) by a second individual that is independent and competent.

Objective

The objective of the control is to mitigate risks primarily of the following two types:

but potentially also other risks

Implementation

Implementing this control is relatively simple in document based approval processes as it requires adding additional qualified persons in the approval list

Issues and Challenges

  • Implementing the principle may be excessively onerous in resources or even impossible in cases where individuals within the organization possess unique knowledge / expertise.
  • The lack of sufficient depth in check and balances is related also to Key Person Risk

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