Controls are put in place to ensure adherence to policies and regulations. When are they also helpful?

Controls are essential mechanisms designed to help an organization adhere to established policies and comply with regulations. They serve multiple purposes, one of which is to reduce or mitigate risk. By implementing controls, organizations can identify potential threats and vulnerabilities, and take proactive measures to minimize their impact or likelihood. This is particularly important in risk management, where the goal is to create a robust framework that protects the organization from unforeseen events that could disrupt operations or lead to financial loss.

Controls can include a variety of strategies such as regular assessments, policies that guide behaviors, and automated solutions that monitor compliance. When risks are properly identified and addressed through these controls, the organization is positioned to maintain stability while continuing to achieve its objectives.

The other choices, while relevant to risk management practices, do not directly pertain to the fundamental role of controls in mitigating risk. For example, setting levels of risk appetite relates more to strategic planning than direct control implementation. Ensuring tracking of audit engagements is an operational aspect of governance rather than a function of controls. Similarly, reducing SLAs associated with vendor contracts doesn't directly link with the primary purpose of controls within risk mitigation frameworks.