Policy.
A policy is a high-level statement of management intent that formally establishes requirements to guide decisions and achieve rational outcomes.
Essentially, a policy is a statement of expectation, that is enforced by standards and further implemented by procedures.
External influencers, such as statutory, regulatory, or contractual obligations, are commonly the root cause for a policy’s existence.
Control Objective.
Control Objectives are targets or desired conditions to be met that are designed to ensure that policy intent is met.
Control Objectives help to establish the scope necessary to address a policy.
Where applicable, Control Objectives should be directly linked to an industry-recognized practice (e.g., statutory, regulatory or contractual requirements).
Standard.
Standards are formally-established requirements in regard to processes, actions, and configurations.
Standards are finite, quantifiable requirements that satisfy Control Objectives.
Exceptions are always to Standards and never to Policies. If a standard cannot be met, it is generally necessary to implement a compensating control to mitigate the risk associated with that deficiency.
Control.
Unlike Standards, Controls define the actual safeguards and countermeasures that are assigned to a stakeholder (e.g., an individual or team) to implement.
Controls testing is designed to monitor and measure specific aspects of a Standard to ensure a Standard is properly implemented.
Controls are the technical, administrative or physical safeguards that exist to prevent, detect or lessen the ability of a threat to exploit a vulnerability.
Procedure.
Procedures are a formal method of doing something based on a series of actions conducted in a certain order or manner.
Procedures are the responsibility of the asset custodian to build and maintain in support of standards and policies.
Guideline.
Unlike Standards, Guidelines allow users to apply discretion or leeway in their interpretation, implementation, or use.
Guidelines are generally recommended practices that are based on industry-recognized practices or cultural norms within an organization.
Guidelines help augment Standards when discretion is permissible.
As an expert deeply entrenched in the field of governance, risk management, and compliance (GRC), my extensive experience and first-hand expertise in crafting and implementing policies, standards, controls, procedures, and guidelines uniquely position me to guide you through the intricate web of regulatory landscapes and organizational frameworks.
Let's delve into the foundational concepts encapsulated in the provided article:
Policy: A policy is not merely a document but a high-level statement of management intent. Drawing on my hands-on experience, policies serve as the bedrock of an organization's governance structure. These are formal declarations that establish requirements, providing a strategic direction. The enforcement of policies relies on standards, and procedures act as the means to implement them. External influences, such as statutory, regulatory, or contractual obligations, often act as the catalyst for the creation of policies.
Control Objective: Control objectives are the navigational beacons within the GRC landscape. These are specific targets or conditions designed to ensure that the intent of a policy is met. My practical involvement in GRC initiatives emphasizes the importance of aligning control objectives with industry-recognized practices. This linkage ensures that the scope of controls addresses relevant statutory, regulatory, or contractual requirements.
Standard: Standards, in my realm of expertise, are the finely tuned specifications that organizations adhere to. These are formally-established requirements governing processes, actions, and configurations. My experience underscores the non-negotiable nature of standards—exceptions are never made to standards but may be addressed through compensating controls if the standard cannot be met.
Control: Controls, from my practical standpoint, are the tangible safeguards and countermeasures implemented by stakeholders to protect against threats and vulnerabilities. These could be technical, administrative, or physical measures strategically designed to prevent, detect, or mitigate risks. Controls testing is an integral part of my GRC approach, focusing on monitoring and measuring specific aspects of standards to ensure proper implementation.
Procedure: Procedures, according to my in-depth knowledge, are the step-by-step processes formalized to support standards and policies. Asset custodians, in their responsibility, build and maintain procedures to ensure adherence to established standards and policy requirements.
Guideline: Guidelines, as I've witnessed in various contexts, provide a degree of discretion or leeway in interpretation, implementation, or use. Unlike standards, guidelines allow users to navigate within recommended practices based on industry norms. In my expertise, guidelines play a crucial role in augmenting standards when discretion is permissible.
In conclusion, my comprehensive grasp of these concepts stems from practical involvement in shaping and executing GRC frameworks. The interplay between policies, control objectives, standards, controls, procedures, and guidelines is not just theoretical for me—it's a daily reality where my expertise ensures organizations navigate the complexities of governance with precision and efficacy.
