Internal Controls
Internal controls are processes, policies, and procedures implemented by an organization to ensure the reliability of financial reporting, compliance with laws and regulations, and the effectiveness and efficiency of operations. They serve as a framework for managing risks, preventing fraud, and safeguarding assets. In software development, internal controls extend to IT governance, data security, and system integrity.
Developers should understand internal controls when building systems that handle sensitive data, financial transactions, or regulated industries (e.g., healthcare, finance) to ensure compliance with standards like SOX, GDPR, or HIPAA. This knowledge helps in designing secure, auditable software and mitigating operational risks, which is critical for roles in fintech, enterprise software, or any domain requiring robust governance.