What is the principle of "segregation of duties" aimed at preventing?

The principle of "segregation of duties" is fundamentally designed to prevent fraud or error within an organization. This principle involves dividing responsibilities among different individuals to reduce the risk that a single person can both initiate and approve a transaction. By ensuring that no one individual has control over all aspects of any critical process, organizations can mitigate the risk of fraudulent activities. For instance, if one employee is responsible for both processing a transaction and reconciling the accounts, that employee could potentially commit fraud or make significant errors without oversight.

While unauthorized access to information, insider threats, and data breaches are important security concerns, they are not the primary focus of segregation of duties. Instead, the emphasis is placed on creating checks and balances within processes to ensure that no single point of failure can lead to significant malfeasance or mistakes, thereby enhancing overall organizational integrity.