Procedures are written primarily to reduce the inherent risk by documenting in writing the business process or activity. Effective procedures are an insight and window into the control, governance and oversight of the organization.

In order for procedures to be effective, they should have the following traits.

  • Consistent data points which are easily understood and communicated.
  • Use the active voice when writing procedures: It’s more direct and leaves less room for interpretation.
  • Explains to readers “why” the procedure is necessary in a way a new hire can understand how this procedure helps the company achieve its objectives.

The focus of this paper is on the primary trait, data points. These set the standard and expectations which enables procedures to be written in a consistent and repeatable format. Moreover, common data points can ensure the proper enforcement of policy by reinforcing the guidelines and standards prescribed. This paper articulates a menu of data points which must be considered in the appreciation and application of this objective.

Below is a table of data points followed by explanations of each data point. **High/Medium/Low refers to scale in relation to admission to the procedures.

Data points explained.

1.Inherent Risk

Inherent risk is an assessed level of the natural level of risk inherent in a process or activity without doing anything to reduce the likelihood or mitigate the severity of a mishap, or the amount of risk before the application of the risk reduction effects of control. Usually categorized into High, Medium, Low. This categorization importantly focuses the organization in both understanding and addressing those processes which represent the greatest risks to the organization, thus, enabling the proper allocation of resources to mitigate these risks.

2.Objective/Purpose and Scope

The purpose is the reason why the business exists, why you exist or why the team does what it does. The objective is the what it needs to do to achieve its goals. Scope of an activity, project or procedure represents the limitations or defines the boundaries of its application. These data points set the stage for the document and allow the reader to appreciate the significance of the process or processes.

3. Owner

Quintessentially the most important player within the process. Each owner has a unique responsibility and accountability to ensuring that the procedures are effective. It is a measurement of management skills and application and a true testament of both standards, leadership and behavior. It is the responsibility of the owner to clearly communicate and train those involved within the process. Given that the most effective control is that of segregation of duties, the Owner can never be the Approver.

4. Approver

Another implicit control is that of Authorizations. which ensures that the Approver is always one level above that of the Owner in the Organizational Hierarchy.

5.Roles and Responsibilities

According to research by the Harvard Business Review, clearly defining people’s roles and responsibilities matters more when determining a team’s success than outlining the precise path the team will take. In other words, team members perform better when they know exactly what they will be responsible for versus having a specific set of predefined steps to complete.

6. Key Controls

Key controls are the procedures organizations put into place to contain internal risks. Key controls are identified because:

  • They will reduce or eliminate some type of risk.
  • They are regularly tested or audited for effectiveness.
  • They protect some area of the business.
  • They can expose a potential area of failure.

7. Escalation/Exceptions/Remediation/Overrides

Every process will from time to time require exceptions, overrides which will require a clear and transparent, escalation and remediation process. This process must be formalized, and records kept to document both the decision-making process and the approval authority. The process speaks to governance and oversight as well as giving an indication of whether the procedures require revisions or amendments.

8.Training and Communication

This is perhaps the most overlooked data point, but it is important part of the efficacy of the procedures. Lack of both or little evidence of these data points being demonstrated, implies a lack of ownership involvement.

9. New Procedures, 10. Legal/Regulatory 11. Updates, Revisions and Amendments

All these data points are crucial in ensuring the currency and relevancy of the procedures. The owner is again responsible for the compliance of each of these data points. Given that these data points are either ad hoc or determined on an annual basis, the materiality of these points have a lower ranking.

12. Business Continuity

A business continuity plan refers to an organization’s system of procedures to restore critical business functions in the event of unplanned disaster. These disasters could include natural disasters, security breaches, service outages, or other potential threats. Usually in most procedures, there is a line item as to the plans and preparations.

13. Data Storage/Integrity/Governance/Management

Data is often said to be an organization greatest asset and as such policy and standards are dictated at the enterprise level. Given the risks and the regulations surrounding data misuse, this is a vulnerability that needs to be addressed upfront. Great care is needed to ensure that any enterprise standards are being complied and adhered to and that personnel are cognizant of such standards. Again, this is a data point whose compliance is an insight into how enterprise directives are being executed.

14. KPI’S, KRI’S

While Key Risk Indicators (KRIs) are used to indicate potential risks, Key Performance Indicators (KPIs) measure performance. At times, they represent key ratios that management can track as indicators of evolving risks, and potential opportunities, which signal the need for action. These measures are normally found in more mature processes.


In order for an organization to achieve consistent and repeatable procedures, it must first determine what data points are required and what data points are achievable. This paper has provided a menu which is not inexhaustible, but which requires considerable thought with regard to the appropriate data points. Much will depend on the organizations objectives and whether they wish to have a set of free-standing procedures or procedures which are more aligned to a consistent look and feel.

A consistent look and feel with consistent data points makes the procedures more auditable and compliant with policy and standards.