Operational Control

Definition ∞ Operational Control involves the systems, processes, and procedures that an organization uses to direct and monitor its daily activities to achieve specific objectives. This includes managing resources, ensuring compliance with internal policies, and maintaining security of systems. For digital asset businesses, this translates to stringent security protocols for hot and cold storage, robust transaction monitoring, and clear internal governance for asset handling. Effective control minimizes errors and fraud.
Context ∞ In the digital asset sector, Operational Control is a critical topic in news concerning exchange security, custody providers, and regulatory compliance. Reports on hacks or service outages often highlight failures in operational control. Institutions engaging with cryptocurrencies must demonstrate strong operational controls to satisfy auditors, regulators, and clients. This focus on control is essential for building trust and reliability in an evolving digital financial landscape.