Operational Controls

Definition ∞ Operational controls are the internal policies and procedures implemented by organizations to manage daily activities and mitigate risks. These controls ensure that business processes function efficiently, adhere to regulatory requirements, and protect assets from fraud or error. In the context of digital asset firms, they encompass security protocols, compliance frameworks, and internal audit mechanisms. Robust operational controls are essential for maintaining trust and stability.
Context ∞ Operational controls are a recurring theme in news regarding cryptocurrency exchanges, custodians, and regulated digital asset service providers. Regulators increasingly emphasize the importance of strong controls to protect consumers and prevent illicit activities. News reports often detail how firms are strengthening these controls in response to evolving compliance standards and security threats.