In risk management, what are 'control activities'?

Control activities are the policies and procedures established by an organization to manage and mitigate risks that could impact the achievement of its objectives. These activities are a crucial component of an effective internal control framework and align with the overall risk management strategy of an organization. They are designed to ensure that necessary actions are taken to address risks and are integral to the operational processes.

Control activities can take various forms, including approvals, authorizations, verifications, reconciliations, and segregation of duties, among others. Their primary purpose is to ensure that risks do not hinder the organization's ability to reach its objectives and that resources are used efficiently and effectively. This aligns with the concept that control activities are instrumental in maintaining the integrity and reliability of the financial reporting process, compliance with laws and regulations, and the overall governance of the organization.