What is the term for the process that ensures effectiveness and compliance within an organization?

The process that ensures effectiveness and compliance within an organization is termed Internal Control. Internal control encompasses the systems and procedures implemented by an organization to safeguard its assets, ensure the accuracy of its financial reporting, and promote adherence to laws and regulations. It includes various measures such as policies, checks and balances, and audits that help an organization operate more efficiently while also mitigating risks associated with errors or fraud.

This process is crucial for maintaining operational integrity and accountability, thereby enhancing an organization’s overall effectiveness and compliance. Quality assurance, risk management, and performance monitoring are also important components of organizational effectiveness, but they serve different specific purposes. Quality assurance focuses on maintaining a standard of quality in products or services, risk management involves identifying and managing potential risks, while performance monitoring refers to evaluating the efficiency and effectiveness of operations. Each of these plays a role in overall organizational success, yet they do not encompass the broader compliance and effectiveness framework established by internal controls.